Correlation Between MCEWEN MINING and OPEN HOUSE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and OPEN HOUSE 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 OPEN HOUSE 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 OPEN HOUSE GROUP, you can compare the effects of market volatilities on MCEWEN MINING and OPEN HOUSE 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 OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and OPEN HOUSE.
Diversification Opportunities for MCEWEN MINING and OPEN HOUSE
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and OPEN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP 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 OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and OPEN HOUSE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and OPEN HOUSE
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the OPEN HOUSE. In addition to that, MCEWEN MINING is 1.87 times more volatile than OPEN HOUSE GROUP. It trades about -0.2 of its total potential returns per unit of risk. OPEN HOUSE GROUP is currently generating about 0.06 per unit of volatility. If you would invest 3,400 in OPEN HOUSE GROUP on September 1, 2024 and sell it today you would earn a total of 80.00 from holding OPEN HOUSE GROUP or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. OPEN HOUSE GROUP
Performance |
| Timeline |
| MCEWEN MINING INC |
| OPEN HOUSE GROUP |
MCEWEN MINING and OPEN HOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and OPEN HOUSE
The main advantage of trading using opposite MCEWEN MINING and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, OPEN HOUSE 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 OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle Group |
| OPEN HOUSE vs. Austevoll Seafood ASA | OPEN HOUSE vs. United Natural Foods | OPEN HOUSE vs. MCEWEN MINING INC | OPEN HOUSE vs. Perseus Mining Limited |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |