Correlation Between MCEWEN MINING and Rayonier Advanced
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Rayonier Advanced 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 Rayonier Advanced 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 Rayonier Advanced Materials, you can compare the effects of market volatilities on MCEWEN MINING and Rayonier Advanced 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 Rayonier Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Rayonier Advanced.
Diversification Opportunities for MCEWEN MINING and Rayonier Advanced
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Rayonier is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Rayonier Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rayonier Advanced 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 Rayonier Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rayonier Advanced has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Rayonier Advanced go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Rayonier Advanced
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.73 times more return on investment than Rayonier Advanced. However, MCEWEN MINING is 1.73 times more volatile than Rayonier Advanced Materials. It trades about -0.03 of its potential returns per unit of risk. Rayonier Advanced Materials is currently generating about -0.33 per unit of risk. If you would invest 820.00 in MCEWEN MINING INC on September 19, 2024 and sell it today you would lose (30.00) from holding MCEWEN MINING INC or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Rayonier Advanced Materials
Performance |
| Timeline |
| MCEWEN MINING INC |
| Rayonier Advanced |
MCEWEN MINING and Rayonier Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Rayonier Advanced
The main advantage of trading using opposite MCEWEN MINING and Rayonier Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Rayonier Advanced 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 Rayonier Advanced will offset losses from the drop in Rayonier Advanced's long position.| MCEWEN MINING vs. Virtus Investment Partners | MCEWEN MINING vs. Chongqing Machinery Electric | MCEWEN MINING vs. Dairy Farm International | MCEWEN MINING vs. WIMFARM SA EO |
| Rayonier Advanced vs. Performance Food Group | Rayonier Advanced vs. Austevoll Seafood ASA | Rayonier Advanced vs. DICKER DATA LTD | Rayonier Advanced vs. Lery Seafood 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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