Correlation Between MCEWEN MINING and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Yanzhou Coal 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 Yanzhou Coal 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 Yanzhou Coal Mining, you can compare the effects of market volatilities on MCEWEN MINING and Yanzhou Coal 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 Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Yanzhou Coal.
Diversification Opportunities for MCEWEN MINING and Yanzhou Coal
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and Yanzhou is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining 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 Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Yanzhou Coal go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Yanzhou Coal
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.07 times more return on investment than Yanzhou Coal. However, MCEWEN MINING is 1.07 times more volatile than Yanzhou Coal Mining. It trades about 0.01 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about 0.0 per unit of risk. If you would invest 805.00 in MCEWEN MINING INC on November 2, 2024 and sell it today you would lose (25.00) from holding MCEWEN MINING INC or give up 3.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MCEWEN MINING INC vs. Yanzhou Coal Mining
Performance |
Timeline |
MCEWEN MINING INC |
Yanzhou Coal Mining |
MCEWEN MINING and Yanzhou Coal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and Yanzhou Coal
The main advantage of trading using opposite MCEWEN MINING and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Yanzhou Coal 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.MCEWEN MINING vs. Telecom Argentina SA | MCEWEN MINING vs. Cairo Communication SpA | MCEWEN MINING vs. Spirent Communications plc | MCEWEN MINING vs. MidCap Financial Investment |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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