Correlation Between MCEWEN MINING and Virtus Investment
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Virtus Investment 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 Virtus Investment 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 Virtus Investment Partners, you can compare the effects of market volatilities on MCEWEN MINING and Virtus Investment 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 Virtus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Virtus Investment.
Diversification Opportunities for MCEWEN MINING and Virtus Investment
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and Virtus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Virtus Investment Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Investment 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 Virtus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Investment has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Virtus Investment go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Virtus Investment
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Virtus Investment. In addition to that, MCEWEN MINING is 1.38 times more volatile than Virtus Investment Partners. It trades about -0.04 of its total potential returns per unit of risk. Virtus Investment Partners is currently generating about 0.23 per unit of volatility. If you would invest 18,397 in Virtus Investment Partners on August 30, 2024 and sell it today you would earn a total of 4,803 from holding Virtus Investment Partners or generate 26.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Virtus Investment Partners
Performance |
| Timeline |
| MCEWEN MINING INC |
| Virtus Investment |
MCEWEN MINING and Virtus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Virtus Investment
The main advantage of trading using opposite MCEWEN MINING and Virtus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Virtus Investment 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 Virtus Investment will offset losses from the drop in Virtus Investment's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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