Correlation Between MCEWEN MINING and PEPKOR
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PEPKOR 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 PEPKOR 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 PEPKOR LTD, you can compare the effects of market volatilities on MCEWEN MINING and PEPKOR 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 PEPKOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PEPKOR.
Diversification Opportunities for MCEWEN MINING and PEPKOR
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and PEPKOR is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PEPKOR LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPKOR LTD 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 PEPKOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPKOR LTD has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PEPKOR go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PEPKOR
Assuming the 90 days horizon MCEWEN MINING is expected to generate 8.21 times less return on investment than PEPKOR. But when comparing it to its historical volatility, MCEWEN MINING INC is 4.56 times less risky than PEPKOR. It trades about 0.1 of its potential returns per unit of risk. PEPKOR LTD is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 90.00 in PEPKOR LTD on November 3, 2024 and sell it today you would earn a total of 40.00 from holding PEPKOR LTD or generate 44.44% 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. PEPKOR LTD
Performance |
| Timeline |
| MCEWEN MINING INC |
| PEPKOR LTD |
MCEWEN MINING and PEPKOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PEPKOR
The main advantage of trading using opposite MCEWEN MINING and PEPKOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PEPKOR 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 PEPKOR will offset losses from the drop in PEPKOR's long position.| MCEWEN MINING vs. CITY OFFICE REIT | MCEWEN MINING vs. alstria office REIT AG | MCEWEN MINING vs. Siamgas And Petrochemicals | MCEWEN MINING vs. CENTURIA OFFICE REIT |
| PEPKOR vs. Zoom Video Communications | PEPKOR vs. Cairo Communication SpA | PEPKOR vs. GALENA MINING LTD | PEPKOR vs. ecotel communication ag |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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