Correlation Between MINCO SILVER and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER 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 MINCO SILVER and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and MCEWEN MINING INC, you can compare the effects of market volatilities on MINCO SILVER 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 MINCO SILVER with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and MCEWEN MINING.
Diversification Opportunities for MINCO SILVER and MCEWEN MINING
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MINCO and MCEWEN is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER i.e., MINCO SILVER and MCEWEN MINING go up and down completely randomly.
Pair Corralation between MINCO SILVER and MCEWEN MINING
Assuming the 90 days trading horizon MINCO SILVER is expected to generate 0.74 times more return on investment than MCEWEN MINING. However, MINCO SILVER is 1.35 times less risky than MCEWEN MINING. It trades about -0.1 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.16 per unit of risk. If you would invest 14.00 in MINCO SILVER on August 29, 2024 and sell it today you would lose (1.00) from holding MINCO SILVER or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. MCEWEN MINING INC
Performance |
| Timeline |
| MINCO SILVER |
| MCEWEN MINING INC |
MINCO SILVER and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and MCEWEN MINING
The main advantage of trading using opposite MINCO SILVER and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER 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.| MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Microsoft | MINCO SILVER vs. Microsoft |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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