Correlation Between MCEWEN MINING and Seaboard
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Seaboard 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 Seaboard 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 Seaboard, you can compare the effects of market volatilities on MCEWEN MINING and Seaboard 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 Seaboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Seaboard.
Diversification Opportunities for MCEWEN MINING and Seaboard
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and Seaboard is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard 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 Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Seaboard go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Seaboard
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.85 times more return on investment than Seaboard. However, MCEWEN MINING is 2.85 times more volatile than Seaboard. It trades about 0.04 of its potential returns per unit of risk. Seaboard is currently generating about -0.04 per unit of risk. If you would invest 540.00 in MCEWEN MINING INC on September 14, 2024 and sell it today you would earn a total of 315.00 from holding MCEWEN MINING INC or generate 58.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Seaboard
Performance |
| Timeline |
| MCEWEN MINING INC |
| Seaboard |
MCEWEN MINING and Seaboard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Seaboard
The main advantage of trading using opposite MCEWEN MINING and Seaboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Seaboard 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 Seaboard will offset losses from the drop in Seaboard'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 |
| Seaboard vs. DISTRICT METALS | Seaboard vs. Universal Entertainment | Seaboard vs. MCEWEN MINING INC | Seaboard vs. Seven West Media |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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