Correlation Between Atresmedia and McEwen Mining

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

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

Diversification Opportunities for Atresmedia and McEwen Mining

-0.08

Correlation Coefficient

Atresmedia  McEwen Mining

Good diversification

The 3 months correlation between Atresmedia and McEwen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Atresmedia 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 Atresmedia 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 Atresmedia i.e., Atresmedia and McEwen Mining go up and down completely randomly.

Pair Corralation between Atresmedia and McEwen Mining

Assuming the 90 days trading horizon Atresmedia is expected to generate 0.37 times more return on investment than McEwen Mining. However, Atresmedia is 2.72 times less risky than McEwen Mining. It trades about 0.19 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.12 per unit of risk. If you would invest  444.00  in Atresmedia on December 4, 2024 and sell it today you would earn a total of  62.00  from holding Atresmedia or generate 13.96% return on investment over 90 days.

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

Atresmedia  vs.  McEwen Mining

Atresmedia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atresmedia are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Atresmedia unveiled solid returns over the last few months and may actually be approaching a breakup point.

McEwen Mining

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Atresmedia and McEwen Mining

The main advantage of trading using opposite Atresmedia and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia 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.

The idea behind Atresmedia and McEwen Mining 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.