Correlation Between MCEWEN MINING and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on MCEWEN MINING and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Perseus Mining.
Diversification Opportunities for MCEWEN MINING and Perseus Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MCEWEN and Perseus is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Perseus Mining go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Perseus Mining
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.57 times less return on investment than Perseus Mining. In addition to that, MCEWEN MINING is 1.24 times more volatile than Perseus Mining Limited. It trades about 0.01 of its total potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.03 per unit of volatility. If you would invest 158.00 in Perseus Mining Limited on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Perseus Mining Limited or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Perseus Mining Limited
Performance |
| Timeline |
| MCEWEN MINING INC |
| Perseus Mining |
MCEWEN MINING and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Perseus Mining
The main advantage of trading using opposite MCEWEN MINING and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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