Correlation Between McEwen Mining and Tissue Regenix

Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Tissue Regenix 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 McEwen Mining and Tissue Regenix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between McEwen Mining and Tissue Regenix Group, you can compare the effects of market volatilities on McEwen Mining and Tissue Regenix 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 McEwen Mining with a short position of Tissue Regenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Tissue Regenix.

Diversification Opportunities for McEwen Mining and Tissue Regenix

-0.31

Correlation Coefficient

McEwen Mining  Tissue Regenix

Very good diversification

The 3 months correlation between McEwen and Tissue is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Tissue Regenix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tissue Regenix Group and McEwen Mining 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 McEwen Mining are associated (or correlated) with Tissue Regenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tissue Regenix Group has no effect on the direction of McEwen Mining i.e., McEwen Mining and Tissue Regenix go up and down completely randomly.

Pair Corralation between McEwen Mining and Tissue Regenix

Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Tissue Regenix. In addition to that, McEwen Mining is 1.81 times more volatile than Tissue Regenix Group. It trades about -0.11 of its total potential returns per unit of risk. Tissue Regenix Group is currently generating about 0.1 per unit of volatility. If you would invest  5,400  in Tissue Regenix Group on October 25, 2024 and sell it today you would earn a total of  500.00  from holding Tissue Regenix Group or generate 9.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

McEwen Mining  vs.  Tissue Regenix Group

McEwen Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days McEwen Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Tissue Regenix Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tissue Regenix Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Tissue Regenix may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with McEwen Mining and Tissue Regenix

The main advantage of trading using opposite McEwen Mining and Tissue Regenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Tissue Regenix 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 Tissue Regenix will offset losses from the drop in Tissue Regenix's long position.

The idea behind McEwen Mining and Tissue Regenix Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.