Correlation Between MCEWEN MINING and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE, you can compare the effects of market volatilities on MCEWEN MINING and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and WT OFFSHORE.
Diversification Opportunities for MCEWEN MINING and WT OFFSHORE
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and UWV is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and WT OFFSHORE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and WT OFFSHORE
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the WT OFFSHORE. In addition to that, MCEWEN MINING is 1.2 times more volatile than WT OFFSHORE. It trades about -0.16 of its total potential returns per unit of risk. WT OFFSHORE is currently generating about -0.01 per unit of volatility. If you would invest 187.00 in WT OFFSHORE on August 29, 2024 and sell it today you would lose (4.00) from holding WT OFFSHORE or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. WT OFFSHORE
Performance |
| Timeline |
| MCEWEN MINING INC |
| WT OFFSHORE |
MCEWEN MINING and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and WT OFFSHORE
The main advantage of trading using opposite MCEWEN MINING and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, WT OFFSHORE 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| WT OFFSHORE vs. Apple Inc | WT OFFSHORE vs. Apple Inc | WT OFFSHORE vs. Microsoft | WT OFFSHORE vs. Microsoft |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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