Correlation Between Chevron Corp and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Chevron Corp 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 Chevron Corp and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and McEwen Mining, you can compare the effects of market volatilities on Chevron Corp 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 Chevron Corp with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and McEwen Mining.
Diversification Opportunities for Chevron Corp and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Chevron Corp 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 Chevron Corp 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 Chevron Corp i.e., Chevron Corp and McEwen Mining go up and down completely randomly.
Pair Corralation between Chevron Corp and McEwen Mining
If you would invest 284,000 in Chevron Corp on October 27, 2024 and sell it today you would earn a total of 31,643 from holding Chevron Corp or generate 11.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Chevron Corp vs. McEwen Mining
Performance |
Timeline |
Chevron Corp |
McEwen Mining |
Chevron Corp and McEwen Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chevron Corp and McEwen Mining
The main advantage of trading using opposite Chevron Corp and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp 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.Chevron Corp vs. Monster Beverage Corp | Chevron Corp vs. Prudential Financial | Chevron Corp vs. Samsung Electronics Co | Chevron Corp vs. United Airlines Holdings |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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