Correlation Between MCEWEN MINING and CVW CLEANTECH
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CVW CLEANTECH 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 CVW CLEANTECH 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 CVW CLEANTECH INC, you can compare the effects of market volatilities on MCEWEN MINING and CVW CLEANTECH 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 CVW CLEANTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CVW CLEANTECH.
Diversification Opportunities for MCEWEN MINING and CVW CLEANTECH
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and CVW is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CVW CLEANTECH INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CLEANTECH INC 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 CVW CLEANTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CLEANTECH INC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CVW CLEANTECH go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CVW CLEANTECH
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the CVW CLEANTECH. In addition to that, MCEWEN MINING is 1.91 times more volatile than CVW CLEANTECH INC. It trades about -0.04 of its total potential returns per unit of risk. CVW CLEANTECH INC is currently generating about -0.04 per unit of volatility. If you would invest 57.00 in CVW CLEANTECH INC on September 24, 2024 and sell it today you would lose (1.00) from holding CVW CLEANTECH INC or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. CVW CLEANTECH INC
Performance |
| Timeline |
| MCEWEN MINING INC |
| CVW CLEANTECH INC |
MCEWEN MINING and CVW CLEANTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CVW CLEANTECH
The main advantage of trading using opposite MCEWEN MINING and CVW CLEANTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CVW CLEANTECH 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 CVW CLEANTECH will offset losses from the drop in CVW CLEANTECH's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. THARISA NON LIST | MCEWEN MINING vs. SYLVANIA PLAT DL |
| CVW CLEANTECH vs. Salesforce | CVW CLEANTECH vs. CODERE ONLINE LUX | CVW CLEANTECH vs. EAT WELL INVESTMENT | CVW CLEANTECH vs. HK Electric Investments |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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