Correlation Between MCEWEN MINING and Molson Coors
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Molson Coors at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MCEWEN MINING and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCEWEN MINING INC and Molson Coors Beverage, you can compare the effects of market volatilities on MCEWEN MINING and Molson Coors and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MCEWEN MINING with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Molson Coors.
Diversification Opportunities for MCEWEN MINING and Molson Coors
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Molson is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage and MCEWEN MINING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MCEWEN MINING INC are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Molson Coors go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Molson Coors
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.59 times more return on investment than Molson Coors. However, MCEWEN MINING is 2.59 times more volatile than Molson Coors Beverage. It trades about 0.04 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.03 per unit of risk. If you would invest 535.00 in MCEWEN MINING INC on September 3, 2024 and sell it today you would earn a total of 250.00 from holding MCEWEN MINING INC or generate 46.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Molson Coors Beverage
Performance |
| Timeline |
| MCEWEN MINING INC |
| Molson Coors Beverage |
MCEWEN MINING and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Molson Coors
The main advantage of trading using opposite MCEWEN MINING and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Molson Coors can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Molson Coors will offset losses from the drop in Molson Coors' long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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