Correlation Between MCEWEN MINING and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PICKN PAY 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 PICKN PAY 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 PICKN PAY STORES, you can compare the effects of market volatilities on MCEWEN MINING and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PICKN PAY.
Diversification Opportunities for MCEWEN MINING and PICKN PAY
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and PICKN is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PICKN PAY go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PICKN PAY
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.12 times more return on investment than PICKN PAY. However, MCEWEN MINING is 1.12 times more volatile than PICKN PAY STORES. It trades about 0.03 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about -0.03 per unit of risk. If you would invest 655.00 in MCEWEN MINING INC on August 31, 2024 and sell it today you would earn a total of 120.00 from holding MCEWEN MINING INC or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
MCEWEN MINING INC vs. PICKN PAY STORES
Performance |
| Timeline |
| MCEWEN MINING INC |
| PICKN PAY STORES |
MCEWEN MINING and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PICKN PAY
The main advantage of trading using opposite MCEWEN MINING and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| MCEWEN MINING vs. BLUESCOPE STEEL | MCEWEN MINING vs. MEDICAL FACILITIES NEW | MCEWEN MINING vs. IMAGIN MEDICAL INC | MCEWEN MINING vs. Avanos Medical |
| PICKN PAY vs. SIVERS SEMICONDUCTORS AB | PICKN PAY vs. Darden Restaurants | PICKN PAY vs. Reliance Steel Aluminum | PICKN PAY vs. Q2M Managementberatung AG |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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