Correlation Between Sanyo Chemical and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Sanyo Chemical 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 Sanyo Chemical and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanyo Chemical Industries and MCEWEN MINING INC, you can compare the effects of market volatilities on Sanyo Chemical 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 Sanyo Chemical with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanyo Chemical and MCEWEN MINING.
Diversification Opportunities for Sanyo Chemical and MCEWEN MINING
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sanyo and MCEWEN is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sanyo Chemical Industries 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 Sanyo Chemical 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 Sanyo Chemical Industries 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 Sanyo Chemical i.e., Sanyo Chemical and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Sanyo Chemical and MCEWEN MINING
Assuming the 90 days horizon Sanyo Chemical Industries is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, Sanyo Chemical Industries is 2.99 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 0.02 of returns per unit of risk over similar time horizon. If you would invest 735.00 in MCEWEN MINING INC on August 26, 2024 and sell it today you would earn a total of 60.00 from holding MCEWEN MINING INC or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanyo Chemical Industries vs. MCEWEN MINING INC
Performance |
| Timeline |
| Sanyo Chemical Industries |
| MCEWEN MINING INC |
Sanyo Chemical and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanyo Chemical and MCEWEN MINING
The main advantage of trading using opposite Sanyo Chemical and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanyo Chemical 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.| Sanyo Chemical vs. Air Liquide SA | Sanyo Chemical vs. PPG Industries | Sanyo Chemical vs. Albemarle | Sanyo Chemical vs. Superior Plus Corp |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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