Correlation Between MCEWEN MINING and Veolia Environnement
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Veolia Environnement 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 Veolia Environnement 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 Veolia Environnement SA, you can compare the effects of market volatilities on MCEWEN MINING and Veolia Environnement 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 Veolia Environnement. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Veolia Environnement.
Diversification Opportunities for MCEWEN MINING and Veolia Environnement
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and Veolia is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Veolia Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veolia Environnement 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 Veolia Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veolia Environnement has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Veolia Environnement go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Veolia Environnement
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.04 times more return on investment than Veolia Environnement. However, MCEWEN MINING is 2.04 times more volatile than Veolia Environnement SA. It trades about 0.04 of its potential returns per unit of risk. Veolia Environnement SA is currently generating about 0.03 per unit of risk. If you would invest 555.00 in MCEWEN MINING INC on September 13, 2024 and sell it today you would earn a total of 260.00 from holding MCEWEN MINING INC or generate 46.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Veolia Environnement SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| Veolia Environnement |
MCEWEN MINING and Veolia Environnement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Veolia Environnement
The main advantage of trading using opposite MCEWEN MINING and Veolia Environnement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Veolia Environnement 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 Veolia Environnement will offset losses from the drop in Veolia Environnement's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| Veolia Environnement vs. GRIFFIN MINING LTD | Veolia Environnement vs. Hochschild Mining plc | Veolia Environnement vs. OURGAME INTHOLDL 00005 | Veolia Environnement vs. MCEWEN MINING INC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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