Correlation Between MCEWEN MINING and PUMA SE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PUMA SE 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 PUMA SE 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 PUMA SE UNSPADR, you can compare the effects of market volatilities on MCEWEN MINING and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PUMA SE.
Diversification Opportunities for MCEWEN MINING and PUMA SE
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and PUMA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PUMA SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE UNSPADR 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE UNSPADR has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PUMA SE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PUMA SE
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.79 times more return on investment than PUMA SE. However, MCEWEN MINING INC is 1.27 times less risky than PUMA SE. It trades about -0.07 of its potential returns per unit of risk. PUMA SE UNSPADR is currently generating about -0.24 per unit of risk. If you would invest 755.00 in MCEWEN MINING INC on November 30, 2024 and sell it today you would lose (75.00) from holding MCEWEN MINING INC or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
MCEWEN MINING INC vs. PUMA SE UNSPADR
Performance |
| Timeline |
| MCEWEN MINING INC |
| PUMA SE UNSPADR |
MCEWEN MINING and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PUMA SE
The main advantage of trading using opposite MCEWEN MINING and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| MCEWEN MINING vs. MEDICAL FACILITIES NEW | MCEWEN MINING vs. MeVis Medical Solutions | MCEWEN MINING vs. CVR Medical Corp | MCEWEN MINING vs. PennantPark Investment |
| PUMA SE vs. Easy Software AG | PUMA SE vs. REVO INSURANCE SPA | PUMA SE vs. AXWAY SOFTWARE EO | PUMA SE vs. Insurance Australia 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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