Correlation Between MCEWEN MINING and Kering SA
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Kering SA 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 Kering SA 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 Kering SA, you can compare the effects of market volatilities on MCEWEN MINING and Kering SA 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 Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Kering SA.
Diversification Opportunities for MCEWEN MINING and Kering SA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and Kering is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA 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 Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Kering SA go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Kering SA
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.23 times more return on investment than Kering SA. However, MCEWEN MINING is 1.23 times more volatile than Kering SA. It trades about 0.03 of its potential returns per unit of risk. Kering SA is currently generating about 0.03 per unit of risk. If you would invest 795.00 in MCEWEN MINING INC on September 12, 2024 and sell it today you would earn a total of 20.00 from holding MCEWEN MINING INC or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Kering SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| Kering SA |
MCEWEN MINING and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Kering SA
The main advantage of trading using opposite MCEWEN MINING and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| Kering SA vs. BJs Wholesale Club | Kering SA vs. SPARTAN STORES | Kering SA vs. Renesas Electronics | Kering SA vs. Methode Electronics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |