Correlation Between MCEWEN MINING and Penn National
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Penn National 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 Penn National 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 Penn National Gaming, you can compare the effects of market volatilities on MCEWEN MINING and Penn National 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 Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Penn National.
Diversification Opportunities for MCEWEN MINING and Penn National
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and Penn is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming 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 Penn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Penn National go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Penn National
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Penn National. In addition to that, MCEWEN MINING is 1.29 times more volatile than Penn National Gaming. It trades about -0.17 of its total potential returns per unit of risk. Penn National Gaming is currently generating about 0.09 per unit of volatility. If you would invest 1,830 in Penn National Gaming on August 28, 2024 and sell it today you would earn a total of 88.00 from holding Penn National Gaming or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Penn National Gaming
Performance |
| Timeline |
| MCEWEN MINING INC |
| Penn National Gaming |
MCEWEN MINING and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Penn National
The main advantage of trading using opposite MCEWEN MINING and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Penn National 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 Penn National will offset losses from the drop in Penn National'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 |
| Penn National vs. Autohome ADR | Penn National vs. Ribbon Communications | Penn National vs. Taylor Morrison Home | Penn National vs. Aedas Homes SA |
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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