Correlation Between WOLFDEN RES and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both WOLFDEN RES 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 WOLFDEN RES and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WOLFDEN RES P and MCEWEN MINING INC, you can compare the effects of market volatilities on WOLFDEN RES 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 WOLFDEN RES with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOLFDEN RES and MCEWEN MINING.
Diversification Opportunities for WOLFDEN RES and MCEWEN MINING
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WOLFDEN and MCEWEN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding WOLFDEN RES P 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 WOLFDEN RES 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 WOLFDEN RES P 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 WOLFDEN RES i.e., WOLFDEN RES and MCEWEN MINING go up and down completely randomly.
Pair Corralation between WOLFDEN RES and MCEWEN MINING
Assuming the 90 days horizon WOLFDEN RES P is expected to generate 4.53 times more return on investment than MCEWEN MINING. However, WOLFDEN RES is 4.53 times more volatile than MCEWEN MINING INC. It trades about 0.05 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.06 per unit of risk. If you would invest 2.35 in WOLFDEN RES P on October 28, 2024 and sell it today you would earn a total of 0.00 from holding WOLFDEN RES P or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WOLFDEN RES P vs. MCEWEN MINING INC
Performance |
| Timeline |
| WOLFDEN RES P |
| MCEWEN MINING INC |
WOLFDEN RES and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WOLFDEN RES and MCEWEN MINING
The main advantage of trading using opposite WOLFDEN RES and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOLFDEN RES 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.| WOLFDEN RES vs. ETFS Coffee ETC | WOLFDEN RES vs. ZINC MEDIA GR | WOLFDEN RES vs. Tencent Music Entertainment | WOLFDEN RES vs. PROSIEBENSAT1 MEDIADR4 |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv | MCEWEN MINING vs. INTUITIVE SURGICAL |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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