Correlation Between MCEWEN MINING and SEKISUI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL, you can compare the effects of market volatilities on MCEWEN MINING and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and SEKISUI CHEMICAL.
Diversification Opportunities for MCEWEN MINING and SEKISUI CHEMICAL
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCEWEN and SEKISUI is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between MCEWEN MINING and SEKISUI CHEMICAL
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.19 times more return on investment than SEKISUI CHEMICAL. However, MCEWEN MINING is 2.19 times more volatile than SEKISUI CHEMICAL. It trades about 0.11 of its potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about 0.08 per unit of risk. If you would invest 795.00 in MCEWEN MINING INC on September 13, 2024 and sell it today you would earn a total of 60.00 from holding MCEWEN MINING INC or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. SEKISUI CHEMICAL
Performance |
| Timeline |
| MCEWEN MINING INC |
| SEKISUI CHEMICAL |
MCEWEN MINING and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and SEKISUI CHEMICAL
The main advantage of trading using opposite MCEWEN MINING and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, SEKISUI CHEMICAL 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL'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 |
| SEKISUI CHEMICAL vs. Wayside Technology Group | SEKISUI CHEMICAL vs. PKSHA TECHNOLOGY INC | SEKISUI CHEMICAL vs. SIEM OFFSHORE NEW | SEKISUI CHEMICAL vs. Columbia Sportswear |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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