Correlation Between MCEWEN MINING and Tradegate
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on MCEWEN MINING and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Tradegate.
Diversification Opportunities for MCEWEN MINING and Tradegate
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Tradegate is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Tradegate go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Tradegate
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Tradegate. In addition to that, MCEWEN MINING is 11.81 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about -0.08 of its total potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about 0.17 per unit of volatility. If you would invest 8,750 in Tradegate AG Wertpapierhandelsbank on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Tradegate AG Wertpapierhandelsbank or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| MCEWEN MINING INC |
| Tradegate AG Wertpap |
MCEWEN MINING and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Tradegate
The main advantage of trading using opposite MCEWEN MINING and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| Tradegate vs. Tencent Music Entertainment | Tradegate vs. UNIVMUSIC GRPADR050 | Tradegate vs. Kaiser Aluminum | Tradegate vs. ETFS Coffee ETC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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