Correlation Between MCEWEN MINING and Ping An
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on MCEWEN MINING and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Ping An.
Diversification Opportunities for MCEWEN MINING and Ping An
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Ping is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Ping An go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Ping An
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.7 times more return on investment than Ping An. However, MCEWEN MINING is 1.7 times more volatile than Ping An Insurance. It trades about 0.19 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.09 per unit of risk. If you would invest 760.00 in MCEWEN MINING INC on September 15, 2024 and sell it today you would earn a total of 105.00 from holding MCEWEN MINING INC or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Ping An Insurance
Performance |
| Timeline |
| MCEWEN MINING INC |
| Ping An Insurance |
MCEWEN MINING and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Ping An
The main advantage of trading using opposite MCEWEN MINING and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An'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 |
| Ping An vs. American Public Education | Ping An vs. Zoom Video Communications | Ping An vs. Xinhua Winshare Publishing | Ping An vs. MCEWEN MINING INC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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