Correlation Between MCEWEN MINING and TFS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL, you can compare the effects of market volatilities on MCEWEN MINING and TFS FINANCIAL 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 TFS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and TFS FINANCIAL.
Diversification Opportunities for MCEWEN MINING and TFS FINANCIAL
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and TFS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and TFS FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFS FINANCIAL 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 TFS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFS FINANCIAL has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and TFS FINANCIAL go up and down completely randomly.
Pair Corralation between MCEWEN MINING and TFS FINANCIAL
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.41 times more return on investment than TFS FINANCIAL. However, MCEWEN MINING is 2.41 times more volatile than TFS FINANCIAL. It trades about 0.04 of its potential returns per unit of risk. TFS FINANCIAL is currently generating about 0.03 per unit of risk. If you would invest 535.00 in MCEWEN MINING INC on September 3, 2024 and sell it today you would earn a total of 250.00 from holding MCEWEN MINING INC or generate 46.73% 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. TFS FINANCIAL
Performance |
| Timeline |
| MCEWEN MINING INC |
| TFS FINANCIAL |
MCEWEN MINING and TFS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and TFS FINANCIAL
The main advantage of trading using opposite MCEWEN MINING and TFS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, TFS FINANCIAL 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 TFS FINANCIAL will offset losses from the drop in TFS FINANCIAL'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 |
| TFS FINANCIAL vs. Gladstone Investment | TFS FINANCIAL vs. Infrastrutture Wireless Italiane | TFS FINANCIAL vs. WillScot Mobile Mini | TFS FINANCIAL vs. HK Electric Investments |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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