Correlation Between MCEWEN MINING and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and SOCKET MOBILE 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 SOCKET MOBILE 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 SOCKET MOBILE NEW, you can compare the effects of market volatilities on MCEWEN MINING and SOCKET MOBILE 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 SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and SOCKET MOBILE.
Diversification Opportunities for MCEWEN MINING and SOCKET MOBILE
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and SOCKET is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW 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 SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and SOCKET MOBILE
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.89 times less return on investment than SOCKET MOBILE. But when comparing it to its historical volatility, MCEWEN MINING INC is 1.86 times less risky than SOCKET MOBILE. It trades about 0.1 of its potential returns per unit of risk. SOCKET MOBILE NEW is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 128.00 in SOCKET MOBILE NEW on November 6, 2024 and sell it today you would earn a total of 10.00 from holding SOCKET MOBILE NEW or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| MCEWEN MINING INC |
| SOCKET MOBILE NEW |
MCEWEN MINING and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and SOCKET MOBILE
The main advantage of trading using opposite MCEWEN MINING and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv |
| SOCKET MOBILE vs. INFORMATION SVC GRP | SOCKET MOBILE vs. Pure Storage | SOCKET MOBILE vs. SILVER BULLET DATA | SOCKET MOBILE vs. THAI BEVERAGE |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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