Correlation Between MCEWEN MINING and GAMES OPERATORS

Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GAMES OPERATORS 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 GAMES OPERATORS 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 GAMES OPERATORS SA, you can compare the effects of market volatilities on MCEWEN MINING and GAMES OPERATORS 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 GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GAMES OPERATORS.

Diversification Opportunities for MCEWEN MINING and GAMES OPERATORS

-0.78

Correlation Coefficient

MCEWEN MINING  GAMES OPERATORS

Pay attention - limited upside

The 3 months correlation between MCEWEN and GAMES is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GAMES OPERATORS go up and down completely randomly.

Pair Corralation between MCEWEN MINING and GAMES OPERATORS

Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the GAMES OPERATORS. In addition to that, MCEWEN MINING is 1.15 times more volatile than GAMES OPERATORS SA. It trades about -0.05 of its total potential returns per unit of risk. GAMES OPERATORS SA is currently generating about 0.16 per unit of volatility. If you would invest  318.00  in GAMES OPERATORS SA on December 20, 2024 and sell it today you would earn a total of  87.00  from holding GAMES OPERATORS SA or generate 27.36% return on investment over 90 days.

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

MCEWEN MINING INC  vs.  GAMES OPERATORS SA

MCEWEN MINING INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days MCEWEN MINING INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

GAMES OPERATORS SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GAMES OPERATORS SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, GAMES OPERATORS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MCEWEN MINING and GAMES OPERATORS

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

The idea behind MCEWEN MINING INC and GAMES OPERATORS SA 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.