Correlation Between MCEWEN MINING and S A P
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and S A P 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 S A P 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 SAP SE, you can compare the effects of market volatilities on MCEWEN MINING and S A P 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 S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and S A P.
Diversification Opportunities for MCEWEN MINING and S A P
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and SAP is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and S A P go up and down completely randomly.
Pair Corralation between MCEWEN MINING and S A P
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the S A P. In addition to that, MCEWEN MINING is 2.87 times more volatile than SAP SE. It trades about -0.04 of its total potential returns per unit of risk. SAP SE is currently generating about 0.23 per unit of volatility. If you would invest 22,350 in SAP SE on September 24, 2024 and sell it today you would earn a total of 1,325 from holding SAP SE or generate 5.93% 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. SAP SE
Performance |
| Timeline |
| MCEWEN MINING INC |
| SAP SE |
MCEWEN MINING and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and S A P
The main advantage of trading using opposite MCEWEN MINING and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. THARISA NON LIST | MCEWEN MINING vs. SYLVANIA PLAT DL |
| S A P vs. GAMING FAC SA | S A P vs. MCEWEN MINING INC | S A P vs. SERI INDUSTRIAL EO | S A P vs. Singapore Airlines Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |