Correlation Between MCEWEN MINING and AOYAMA TRADING
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING, you can compare the effects of market volatilities on MCEWEN MINING and AOYAMA TRADING 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 AOYAMA TRADING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and AOYAMA TRADING.
Diversification Opportunities for MCEWEN MINING and AOYAMA TRADING
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCEWEN and AOYAMA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and AOYAMA TRADING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOYAMA TRADING 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 AOYAMA TRADING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOYAMA TRADING has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and AOYAMA TRADING go up and down completely randomly.
Pair Corralation between MCEWEN MINING and AOYAMA TRADING
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.05 times more return on investment than AOYAMA TRADING. However, MCEWEN MINING is 2.05 times more volatile than AOYAMA TRADING. It trades about 0.13 of its potential returns per unit of risk. AOYAMA TRADING is currently generating about -0.2 per unit of risk. If you would invest 765.00 in MCEWEN MINING INC on October 25, 2024 and sell it today you would earn a total of 40.00 from holding MCEWEN MINING INC or generate 5.23% 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. AOYAMA TRADING
Performance |
Timeline |
MCEWEN MINING INC |
AOYAMA TRADING |
MCEWEN MINING and AOYAMA TRADING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and AOYAMA TRADING
The main advantage of trading using opposite MCEWEN MINING and AOYAMA TRADING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, AOYAMA TRADING 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 AOYAMA TRADING will offset losses from the drop in AOYAMA TRADING's long position.MCEWEN MINING vs. Sunny Optical Technology | MCEWEN MINING vs. VELA TECHNOLPLC LS 0001 | MCEWEN MINING vs. Uber Technologies | MCEWEN MINING vs. Agilent Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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