Correlation Between MCEWEN MINING and WESCO International
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and WESCO International 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 WESCO International 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 WESCO International, you can compare the effects of market volatilities on MCEWEN MINING and WESCO International 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 WESCO International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and WESCO International.
Diversification Opportunities for MCEWEN MINING and WESCO International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and WESCO is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and WESCO International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESCO International 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 WESCO International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESCO International has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and WESCO International go up and down completely randomly.
Pair Corralation between MCEWEN MINING and WESCO International
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.92 times more return on investment than WESCO International. However, MCEWEN MINING INC is 1.09 times less risky than WESCO International. It trades about 0.1 of its potential returns per unit of risk. WESCO International is currently generating about 0.02 per unit of risk. If you would invest 785.00 in MCEWEN MINING INC on November 7, 2024 and sell it today you would earn a total of 35.00 from holding MCEWEN MINING INC or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
MCEWEN MINING INC vs. WESCO International
Performance |
| Timeline |
| MCEWEN MINING INC |
| WESCO International |
MCEWEN MINING and WESCO International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and WESCO International
The main advantage of trading using opposite MCEWEN MINING and WESCO International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, WESCO International 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 WESCO International will offset losses from the drop in WESCO International's long position.| MCEWEN MINING vs. Addtech AB | MCEWEN MINING vs. PT Steel Pipe | MCEWEN MINING vs. Tianjin Capital Environmental | MCEWEN MINING vs. ELL ENVIRONHLDGS HD 0001 |
| WESCO International vs. RATIONAL Aktiengesellschaft | WESCO International vs. WW Grainger | WESCO International vs. Fastenal Company | WESCO International vs. Watsco 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |