Correlation Between MCEWEN MINING and Playtech Plc
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Playtech Plc 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 Playtech Plc 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 Playtech plc, you can compare the effects of market volatilities on MCEWEN MINING and Playtech Plc 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 Playtech Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Playtech Plc.
Diversification Opportunities for MCEWEN MINING and Playtech Plc
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and Playtech is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Playtech plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtech plc 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 Playtech Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtech plc has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Playtech Plc go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Playtech Plc
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.87 times more return on investment than Playtech Plc. However, MCEWEN MINING is 1.87 times more volatile than Playtech plc. It trades about 0.02 of its potential returns per unit of risk. Playtech plc is currently generating about 0.04 per unit of risk. If you would invest 735.00 in MCEWEN MINING INC on August 31, 2024 and sell it today you would earn a total of 40.00 from holding MCEWEN MINING INC or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Playtech plc
Performance |
| Timeline |
| MCEWEN MINING INC |
| Playtech plc |
MCEWEN MINING and Playtech Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Playtech Plc
The main advantage of trading using opposite MCEWEN MINING and Playtech Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Playtech Plc 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 Playtech Plc will offset losses from the drop in Playtech Plc'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 |
| Playtech Plc vs. MAVEN WIRELESS SWEDEN | Playtech Plc vs. Tri Pointe Homes | Playtech Plc vs. Gol Intelligent Airlines | Playtech Plc vs. American Airlines Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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