Correlation Between MCEWEN MINING and FOKUS MINING
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and FOKUS MINING 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 FOKUS MINING 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 FOKUS MINING P, you can compare the effects of market volatilities on MCEWEN MINING and FOKUS MINING 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 FOKUS MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and FOKUS MINING.
Diversification Opportunities for MCEWEN MINING and FOKUS MINING
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and FOKUS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and FOKUS MINING P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOKUS MINING P 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 FOKUS MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOKUS MINING P has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and FOKUS MINING go up and down completely randomly.
Pair Corralation between MCEWEN MINING and FOKUS MINING
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.71 times more return on investment than FOKUS MINING. However, MCEWEN MINING INC is 1.41 times less risky than FOKUS MINING. It trades about 0.16 of its potential returns per unit of risk. FOKUS MINING P is currently generating about 0.02 per unit of risk. If you would invest 695.00 in MCEWEN MINING INC on April 22, 2025 and sell it today you would earn a total of 255.00 from holding MCEWEN MINING INC or generate 36.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MCEWEN MINING INC vs. FOKUS MINING P
Performance |
Timeline |
MCEWEN MINING INC |
FOKUS MINING P |
MCEWEN MINING and FOKUS MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and FOKUS MINING
The main advantage of trading using opposite MCEWEN MINING and FOKUS MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, FOKUS MINING 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 FOKUS MINING will offset losses from the drop in FOKUS MINING's long position.MCEWEN MINING vs. STRAYER EDUCATION | MCEWEN MINING vs. Adtalem Global Education | MCEWEN MINING vs. DeVry Education Group | MCEWEN MINING vs. Grand Canyon Education |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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