Correlation Between MCEWEN MINING and Bank of New York Mellon
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Bank of New York Mellon 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 Bank of New York Mellon 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 Bank of, you can compare the effects of market volatilities on MCEWEN MINING and Bank of New York Mellon 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 Bank of New York Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Bank of New York Mellon.
Diversification Opportunities for MCEWEN MINING and Bank of New York Mellon
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Bank is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York Mellon 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 Bank of New York Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York Mellon has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Bank of New York Mellon go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Bank of New York Mellon
Assuming the 90 days horizon MCEWEN MINING is expected to generate 3.45 times less return on investment than Bank of New York Mellon. In addition to that, MCEWEN MINING is 2.77 times more volatile than The Bank of. It trades about 0.02 of its total potential returns per unit of risk. The Bank of is currently generating about 0.16 per unit of volatility. If you would invest 4,087 in The Bank of on December 7, 2024 and sell it today you would earn a total of 3,837 from holding The Bank of or generate 93.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MCEWEN MINING INC vs. The Bank of
Performance |
Timeline |
MCEWEN MINING INC |
Bank of New York Mellon |
MCEWEN MINING and Bank of New York Mellon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and Bank of New York Mellon
The main advantage of trading using opposite MCEWEN MINING and Bank of New York Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Bank of New York Mellon 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 Bank of New York Mellon will offset losses from the drop in Bank of New York Mellon's long position.MCEWEN MINING vs. PEPTONIC MEDICAL | MCEWEN MINING vs. China Medical System | MCEWEN MINING vs. Cass Information Systems | MCEWEN MINING vs. Advanced Medical Solutions |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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