Correlation Between CARSALES and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both CARSALES and MCEWEN MINING 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 CARSALES and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and MCEWEN MINING INC, you can compare the effects of market volatilities on CARSALES and MCEWEN MINING 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 CARSALES with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALES and MCEWEN MINING.
Diversification Opportunities for CARSALES and MCEWEN MINING
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CARSALES and MCEWEN is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC and CARSALES 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 CARSALESCOM are associated (or correlated) with MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of CARSALES i.e., CARSALES and MCEWEN MINING go up and down completely randomly.
Pair Corralation between CARSALES and MCEWEN MINING
Assuming the 90 days trading horizon CARSALESCOM is expected to generate 0.37 times more return on investment than MCEWEN MINING. However, CARSALESCOM is 2.73 times less risky than MCEWEN MINING. It trades about 0.38 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.19 per unit of risk. If you would invest 2,280 in CARSALESCOM on September 1, 2024 and sell it today you would earn a total of 280.00 from holding CARSALESCOM or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARSALESCOM vs. MCEWEN MINING INC
Performance |
| Timeline |
| CARSALESCOM |
| MCEWEN MINING INC |
CARSALES and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALES and MCEWEN MINING
The main advantage of trading using opposite CARSALES and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALES position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| CARSALES vs. CNVISION MEDIA | CARSALES vs. OURGAME INTHOLDL 00005 | CARSALES vs. Playa Hotels Resorts | CARSALES vs. Universal Entertainment |
| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |