Correlation Between YouGov Plc and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both YouGov Plc 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 YouGov Plc and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YouGov plc and McEwen Mining, you can compare the effects of market volatilities on YouGov Plc 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 YouGov Plc with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of YouGov Plc and McEwen Mining.
Diversification Opportunities for YouGov Plc and McEwen Mining
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YouGov and McEwen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding YouGov plc and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and YouGov Plc 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 YouGov plc 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 has no effect on the direction of YouGov Plc i.e., YouGov Plc and McEwen Mining go up and down completely randomly.
Pair Corralation between YouGov Plc and McEwen Mining
Assuming the 90 days trading horizon YouGov plc is expected to under-perform the McEwen Mining. In addition to that, YouGov Plc is 1.69 times more volatile than McEwen Mining. It trades about -0.04 of its total potential returns per unit of risk. McEwen Mining is currently generating about 0.0 per unit of volatility. If you would invest 980.00 in McEwen Mining on September 13, 2024 and sell it today you would lose (77.00) from holding McEwen Mining or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YouGov plc vs. McEwen Mining
Performance |
| Timeline |
| YouGov plc |
| McEwen Mining |
YouGov Plc and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YouGov Plc and McEwen Mining
The main advantage of trading using opposite YouGov Plc and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YouGov Plc 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.| YouGov Plc vs. Molson Coors Beverage | YouGov Plc vs. Monster Beverage Corp | YouGov Plc vs. MoneysupermarketCom Group PLC | YouGov Plc vs. Bisichi Mining PLC |
| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Reliance Industries Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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