Correlation Between MCEWEN MINING and LG Display
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and LG Display 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 LG Display 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 LG Display Co, you can compare the effects of market volatilities on MCEWEN MINING and LG Display 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 LG Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and LG Display.
Diversification Opportunities for MCEWEN MINING and LG Display
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and LGA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and LG Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Display 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 LG Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Display has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and LG Display go up and down completely randomly.
Pair Corralation between MCEWEN MINING and LG Display
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the LG Display. In addition to that, MCEWEN MINING is 1.26 times more volatile than LG Display Co. It trades about -0.07 of its total potential returns per unit of risk. LG Display Co is currently generating about -0.01 per unit of volatility. If you would invest 312.00 in LG Display Co on December 3, 2024 and sell it today you would lose (12.00) from holding LG Display Co or give up 3.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MCEWEN MINING INC vs. LG Display Co
Performance |
Timeline |
MCEWEN MINING INC |
LG Display |
MCEWEN MINING and LG Display Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and LG Display
The main advantage of trading using opposite MCEWEN MINING and LG Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, LG Display 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 LG Display will offset losses from the drop in LG Display's long position.MCEWEN MINING vs. Broadcom | MCEWEN MINING vs. BJs Restaurants | MCEWEN MINING vs. Infrastrutture Wireless Italiane | MCEWEN MINING vs. BROADSTNET LEADL 00025 |
LG Display vs. Summit Hotel Properties | LG Display vs. Xenia Hotels Resorts | LG Display vs. PICKN PAY STORES | LG Display vs. MHP Hotel AG |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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