Correlation Between MCEWEN MINING and Mosaic

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

By analyzing existing cross correlation between MCEWEN MINING INC and The Mosaic, you can compare the effects of market volatilities on MCEWEN MINING and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Mosaic.

Diversification Opportunities for MCEWEN MINING and Mosaic

-0.09

Correlation Coefficient

MCEWEN MINING  Mosaic

Good diversification

The 3 months correlation between MCEWEN and Mosaic is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 INC are associated (or correlated) with Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Mosaic go up and down completely randomly.

Pair Corralation between MCEWEN MINING and Mosaic

Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.69 times less return on investment than Mosaic. In addition to that, MCEWEN MINING is 1.46 times more volatile than The Mosaic. It trades about 0.02 of its total potential returns per unit of risk. The Mosaic is currently generating about 0.06 per unit of volatility. If you would invest  2,336  in The Mosaic on September 15, 2024 and sell it today you would earn a total of  189.00  from holding The Mosaic or generate 8.09% return on investment over 90 days.

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

MCEWEN MINING INC  vs.  The Mosaic

MCEWEN MINING INC

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MCEWEN MINING INC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, MCEWEN MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mosaic

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in The Mosaic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Mosaic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with MCEWEN MINING and Mosaic

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

The idea behind MCEWEN MINING INC and The Mosaic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.