Correlation Between MCEWEN MINING and TIANDE CHEMICAL
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and TIANDE 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 TIANDE 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 TIANDE CHEMICAL, you can compare the effects of market volatilities on MCEWEN MINING and TIANDE 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 TIANDE CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and TIANDE CHEMICAL.
Diversification Opportunities for MCEWEN MINING and TIANDE CHEMICAL
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCEWEN and TIANDE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and TIANDE CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIANDE 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 TIANDE CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIANDE CHEMICAL has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and TIANDE CHEMICAL go up and down completely randomly.
Pair Corralation between MCEWEN MINING and TIANDE CHEMICAL
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.22 times less return on investment than TIANDE CHEMICAL. In addition to that, MCEWEN MINING is 1.53 times more volatile than TIANDE CHEMICAL. It trades about 0.03 of its total potential returns per unit of risk. TIANDE CHEMICAL is currently generating about 0.06 per unit of volatility. If you would invest 5.25 in TIANDE CHEMICAL on September 12, 2024 and sell it today you would earn a total of 2.00 from holding TIANDE CHEMICAL or generate 38.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. TIANDE CHEMICAL
Performance |
| Timeline |
| MCEWEN MINING INC |
| TIANDE CHEMICAL |
MCEWEN MINING and TIANDE CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and TIANDE CHEMICAL
The main advantage of trading using opposite MCEWEN MINING and TIANDE CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, TIANDE 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 TIANDE CHEMICAL will offset losses from the drop in TIANDE 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 |
| TIANDE CHEMICAL vs. Summit Hotel Properties | TIANDE CHEMICAL vs. MELIA HOTELS | TIANDE CHEMICAL vs. Japan Tobacco | TIANDE CHEMICAL vs. Host Hotels Resorts |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |