Correlation Between MCEWEN MINING and THUNDELARRA
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and THUNDELARRA 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 THUNDELARRA 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 THUNDELARRA, you can compare the effects of market volatilities on MCEWEN MINING and THUNDELARRA 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 THUNDELARRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and THUNDELARRA.
Diversification Opportunities for MCEWEN MINING and THUNDELARRA
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and THUNDELARRA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and THUNDELARRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THUNDELARRA 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 THUNDELARRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THUNDELARRA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and THUNDELARRA go up and down completely randomly.
Pair Corralation between MCEWEN MINING and THUNDELARRA
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.75 times more return on investment than THUNDELARRA. However, MCEWEN MINING INC is 1.33 times less risky than THUNDELARRA. It trades about 0.11 of its potential returns per unit of risk. THUNDELARRA is currently generating about -0.19 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. THUNDELARRA
Performance |
| Timeline |
| MCEWEN MINING INC |
| THUNDELARRA |
MCEWEN MINING and THUNDELARRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and THUNDELARRA
The main advantage of trading using opposite MCEWEN MINING and THUNDELARRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, THUNDELARRA 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 THUNDELARRA will offset losses from the drop in THUNDELARRA'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 |
| THUNDELARRA vs. Major Drilling Group | THUNDELARRA vs. BORR DRILLING NEW | THUNDELARRA vs. GungHo Online Entertainment | THUNDELARRA vs. Salesforce |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |