Correlation Between MCEWEN MINING and T MOBILE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and T 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 T 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 T MOBILE US, you can compare the effects of market volatilities on MCEWEN MINING and T 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 T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and T MOBILE.
Diversification Opportunities for MCEWEN MINING and T MOBILE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and TM5 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and T MOBILE US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE US 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 T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE US has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and T MOBILE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and T MOBILE
Assuming the 90 days horizon MCEWEN MINING is expected to generate 8.69 times less return on investment than T MOBILE. In addition to that, MCEWEN MINING is 1.78 times more volatile than T MOBILE US. It trades about 0.0 of its total potential returns per unit of risk. T MOBILE US is currently generating about 0.07 per unit of volatility. If you would invest 21,573 in T MOBILE US on November 6, 2024 and sell it today you would earn a total of 1,437 from holding T MOBILE US or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. T MOBILE US
Performance |
| Timeline |
| MCEWEN MINING INC |
| T MOBILE US |
MCEWEN MINING and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and T MOBILE
The main advantage of trading using opposite MCEWEN MINING and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, T 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 T MOBILE will offset losses from the drop in T MOBILE's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv |
| T MOBILE vs. CLOVER HEALTH INV | T MOBILE vs. BlueScope Steel Limited | T MOBILE vs. PT Steel Pipe | T MOBILE vs. Universal Health Realty |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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