Correlation Between MCEWEN MINING and RELX PLC
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and RELX PLC 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 RELX PLC 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 RELX PLC, you can compare the effects of market volatilities on MCEWEN MINING and RELX PLC 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 RELX PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and RELX PLC.
Diversification Opportunities for MCEWEN MINING and RELX PLC
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and RELX is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and RELX PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RELX PLC 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 RELX PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RELX PLC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and RELX PLC go up and down completely randomly.
Pair Corralation between MCEWEN MINING and RELX PLC
Assuming the 90 days horizon MCEWEN MINING is expected to generate 105.45 times less return on investment than RELX PLC. In addition to that, MCEWEN MINING is 2.64 times more volatile than RELX PLC. It trades about 0.0 of its total potential returns per unit of risk. RELX PLC is currently generating about 0.09 per unit of volatility. If you would invest 4,332 in RELX PLC on December 28, 2024 and sell it today you would earn a total of 300.00 from holding RELX PLC or generate 6.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MCEWEN MINING INC vs. RELX PLC
Performance |
Timeline |
MCEWEN MINING INC |
RELX PLC |
MCEWEN MINING and RELX PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and RELX PLC
The main advantage of trading using opposite MCEWEN MINING and RELX PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, RELX PLC 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 RELX PLC will offset losses from the drop in RELX PLC's long position.MCEWEN MINING vs. Quaker Chemical | MCEWEN MINING vs. CANON MARKETING JP | MCEWEN MINING vs. SILICON LABORATOR | MCEWEN MINING vs. INDO RAMA SYNTHETIC |
RELX PLC vs. BANKINTER ADR 2007 | RELX PLC vs. Emperor Entertainment Hotel | RELX PLC vs. Marie Brizard Wine | RELX PLC vs. Playa Hotels Resorts |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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