Correlation Between MCEWEN MINING and New York
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and New York 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 New York 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 The New York, you can compare the effects of market volatilities on MCEWEN MINING and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and New York.
Diversification Opportunities for MCEWEN MINING and New York
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and New is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and The New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and New York go up and down completely randomly.
Pair Corralation between MCEWEN MINING and New York
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the New York. In addition to that, MCEWEN MINING is 1.79 times more volatile than The New York. It trades about -0.03 of its total potential returns per unit of risk. The New York is currently generating about 0.08 per unit of volatility. If you would invest 4,921 in The New York on August 29, 2024 and sell it today you would earn a total of 305.00 from holding The New York or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
MCEWEN MINING INC vs. The New York
Performance |
| Timeline |
| MCEWEN MINING INC |
| New York |
MCEWEN MINING and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and New York
The main advantage of trading using opposite MCEWEN MINING and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| New York vs. MAGNUM MINING EXP | New York vs. SBM OFFSHORE | New York vs. MCEWEN MINING INC | New York vs. RYU Apparel |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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