Correlation Between Avino Silver and McEwen Mining

Can any of the company-specific risk be diversified away by investing in both Avino 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 Avino 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 Avino Silver Gold and McEwen Mining, you can compare the effects of market volatilities on Avino 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 Avino Silver with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and McEwen Mining.

Diversification Opportunities for Avino Silver and McEwen Mining

-0.26

Correlation Coefficient

Avino Silver  McEwen Mining

Very good diversification

The 3 months correlation between Avino and McEwen is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Avino 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 Avino Silver Gold 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 Avino Silver i.e., Avino Silver and McEwen Mining go up and down completely randomly.

Pair Corralation between Avino Silver and McEwen Mining

Considering the 90-day investment horizon Avino Silver Gold is expected to generate 1.54 times more return on investment than McEwen Mining. However, Avino Silver is 1.54 times more volatile than McEwen Mining. It trades about 0.29 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.03 per unit of risk. If you would invest  86.00  in Avino Silver Gold on December 28, 2024 and sell it today you would earn a total of  110.00  from holding Avino Silver Gold or generate 127.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Avino Silver Gold  vs.  McEwen Mining

Avino Silver Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Avino Silver Gold are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Avino Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

McEwen Mining

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in McEwen Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, McEwen Mining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Avino Silver and McEwen Mining

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

The idea behind Avino Silver Gold 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.