Correlation Between MCEWEN MINING and Regions Financial
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Regions 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 Regions 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 Regions Financial, you can compare the effects of market volatilities on MCEWEN MINING and Regions 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Regions Financial.
Diversification Opportunities for MCEWEN MINING and Regions Financial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Regions is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Regions Financial go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Regions Financial
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Regions Financial. In addition to that, MCEWEN MINING is 1.36 times more volatile than Regions Financial. It trades about -0.08 of its total potential returns per unit of risk. Regions Financial is currently generating about 0.31 per unit of volatility. If you would invest 2,139 in Regions Financial on September 5, 2024 and sell it today you would earn a total of 401.00 from holding Regions Financial or generate 18.75% 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. Regions Financial
Performance |
| Timeline |
| MCEWEN MINING INC |
| Regions Financial |
MCEWEN MINING and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Regions Financial
The main advantage of trading using opposite MCEWEN MINING and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Regions 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 Regions Financial will offset losses from the drop in Regions 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 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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