Correlation Between MCEWEN MINING and ARISTOCRAT LEISURE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and ARISTOCRAT LEISURE 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 ARISTOCRAT LEISURE 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 ARISTOCRAT LEISURE, you can compare the effects of market volatilities on MCEWEN MINING and ARISTOCRAT LEISURE 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 ARISTOCRAT LEISURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and ARISTOCRAT LEISURE.
Diversification Opportunities for MCEWEN MINING and ARISTOCRAT LEISURE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and ARISTOCRAT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and ARISTOCRAT LEISURE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARISTOCRAT LEISURE 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 ARISTOCRAT LEISURE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARISTOCRAT LEISURE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and ARISTOCRAT LEISURE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and ARISTOCRAT LEISURE
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.93 times more return on investment than ARISTOCRAT LEISURE. However, MCEWEN MINING is 2.93 times more volatile than ARISTOCRAT LEISURE. It trades about 0.18 of its potential returns per unit of risk. ARISTOCRAT LEISURE is currently generating about 0.07 per unit of risk. If you would invest 670.00 in MCEWEN MINING INC on April 24, 2025 and sell it today you would earn a total of 285.00 from holding MCEWEN MINING INC or generate 42.54% 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. ARISTOCRAT LEISURE
Performance |
Timeline |
MCEWEN MINING INC |
ARISTOCRAT LEISURE |
MCEWEN MINING and ARISTOCRAT LEISURE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and ARISTOCRAT LEISURE
The main advantage of trading using opposite MCEWEN MINING and ARISTOCRAT LEISURE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, ARISTOCRAT LEISURE 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 ARISTOCRAT LEISURE will offset losses from the drop in ARISTOCRAT LEISURE's long position.MCEWEN MINING vs. Nordic Semiconductor ASA | MCEWEN MINING vs. CENTURIA OFFICE REIT | MCEWEN MINING vs. HAVERTY FURNITURE A | MCEWEN MINING vs. DFS Furniture PLC |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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