Correlation Between MCEWEN MINING and USS
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and USS 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 USS 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 USS Co, you can compare the effects of market volatilities on MCEWEN MINING and USS 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 USS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and USS.
Diversification Opportunities for MCEWEN MINING and USS
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCEWEN and USS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and USS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USS Co 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 USS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USS Co has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and USS go up and down completely randomly.
Pair Corralation between MCEWEN MINING and USS
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.58 times more return on investment than USS. However, MCEWEN MINING is 2.58 times more volatile than USS Co. It trades about 0.03 of its potential returns per unit of risk. USS Co is currently generating about 0.03 per unit of risk. If you would invest 635.00 in MCEWEN MINING INC on October 13, 2024 and sell it today you would earn a total of 165.00 from holding MCEWEN MINING INC or generate 25.98% 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. USS Co
Performance |
| Timeline |
| MCEWEN MINING INC |
| USS Co |
MCEWEN MINING and USS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and USS
The main advantage of trading using opposite MCEWEN MINING and USS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, USS 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 USS will offset losses from the drop in USS's long position.| MCEWEN MINING vs. YOOMA WELLNESS INC | MCEWEN MINING vs. FEMALE HEALTH | MCEWEN MINING vs. JAPAN TOBACCO UNSPADR12 | MCEWEN MINING vs. Calibre Mining Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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