Correlation Between MCEWEN MINING and X FAB
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on MCEWEN MINING and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and X FAB.
Diversification Opportunities for MCEWEN MINING and X FAB
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and XFB is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and X FAB go up and down completely randomly.
Pair Corralation between MCEWEN MINING and X FAB
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.36 times more return on investment than X FAB. However, MCEWEN MINING is 1.36 times more volatile than X FAB Silicon Foundries. It trades about 0.06 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.11 per unit of risk. If you would invest 600.00 in MCEWEN MINING INC on August 28, 2024 and sell it today you would earn a total of 220.00 from holding MCEWEN MINING INC or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.53% |
| Values | Daily Returns |
MCEWEN MINING INC vs. X FAB Silicon Foundries
Performance |
| Timeline |
| MCEWEN MINING INC |
| X FAB Silicon |
MCEWEN MINING and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and X FAB
The main advantage of trading using opposite MCEWEN MINING and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB'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 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |