Correlation Between X FAB and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both X FAB 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 X FAB and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and MCEWEN MINING INC, you can compare the effects of market volatilities on X FAB 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 X FAB with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and MCEWEN MINING.
Diversification Opportunities for X FAB and MCEWEN MINING
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between XFB and MCEWEN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries 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 X FAB 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 X FAB Silicon Foundries 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 X FAB i.e., X FAB and MCEWEN MINING go up and down completely randomly.
Pair Corralation between X FAB and MCEWEN MINING
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, X FAB Silicon Foundries is 1.6 times less risky than MCEWEN MINING. The stock trades about -0.02 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 545.00 in MCEWEN MINING INC on August 24, 2024 and sell it today you would earn a total of 285.00 from holding MCEWEN MINING INC or generate 52.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. MCEWEN MINING INC
Performance |
| Timeline |
| X FAB Silicon |
| MCEWEN MINING INC |
X FAB and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and MCEWEN MINING
The main advantage of trading using opposite X FAB and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB 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.| X FAB vs. Boiron SA | X FAB vs. ON SEMICONDUCTOR | X FAB vs. Tianjin Capital Environmental | X FAB vs. Insteel Industries |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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