Correlation Between MCEWEN MINING and Martin Marietta

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

Diversification Opportunities for MCEWEN MINING and Martin Marietta

-0.04

Correlation Coefficient

MCEWEN MINING  Martin Marietta

Good diversification

The 3 months correlation between MCEWEN and Martin is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials 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 Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Martin Marietta go up and down completely randomly.

Pair Corralation between MCEWEN MINING and Martin Marietta

Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.17 times more return on investment than Martin Marietta. However, MCEWEN MINING is 2.17 times more volatile than Martin Marietta Materials. It trades about 0.18 of its potential returns per unit of risk. Martin Marietta Materials is currently generating about 0.1 per unit of risk. If you would invest  665.00  in MCEWEN MINING INC on April 23, 2025 and sell it today you would earn a total of  285.00  from holding MCEWEN MINING INC or generate 42.86% 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.  Martin Marietta Materials

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 14 (%) 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.

Martin Marietta Materials

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Marietta Materials are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Martin Marietta may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with MCEWEN MINING and Martin Marietta

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

The idea behind MCEWEN MINING INC and Martin Marietta Materials 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.