Correlation Between MCEWEN MINING and TAL Education

Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and TAL Education 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 TAL Education 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 TAL Education Group, you can compare the effects of market volatilities on MCEWEN MINING and TAL Education 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 TAL Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and TAL Education.

Diversification Opportunities for MCEWEN MINING and TAL Education

0.02

Correlation Coefficient

MCEWEN MINING  TAL Education

Significant diversification

The 3 months correlation between MCEWEN and TAL is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and TAL Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAL Education Group 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 TAL Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAL Education Group has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and TAL Education go up and down completely randomly.

Pair Corralation between MCEWEN MINING and TAL Education

Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.35 times more return on investment than TAL Education. However, MCEWEN MINING is 1.35 times more volatile than TAL Education Group. It trades about 0.18 of its potential returns per unit of risk. TAL Education Group is currently generating about 0.09 per unit of risk. If you would invest  675.00  in MCEWEN MINING INC on April 25, 2025 and sell it today you would earn a total of  280.00  from holding MCEWEN MINING INC or generate 41.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MCEWEN MINING INC  vs.  TAL Education Group

MCEWEN MINING INC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MCEWEN MINING INC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MCEWEN MINING reported solid returns over the last few months and may actually be approaching a breakup point.

TAL Education Group

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TAL Education Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TAL Education unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MCEWEN MINING and TAL Education

The main advantage of trading using opposite MCEWEN MINING and TAL Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, TAL Education 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 TAL Education will offset losses from the drop in TAL Education's long position.

The idea behind MCEWEN MINING INC and TAL Education Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.