Correlation Between MCEWEN MINING and Haier Smart
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on MCEWEN MINING and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Haier Smart.
Diversification Opportunities for MCEWEN MINING and Haier Smart
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and Haier is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Haier Smart go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Haier Smart
Assuming the 90 days horizon MCEWEN MINING is expected to generate 13.38 times less return on investment than Haier Smart. In addition to that, MCEWEN MINING is 1.59 times more volatile than Haier Smart Home. It trades about 0.01 of its total potential returns per unit of risk. Haier Smart Home is currently generating about 0.12 per unit of volatility. If you would invest 151.00 in Haier Smart Home on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Haier Smart Home or generate 16.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MCEWEN MINING INC vs. Haier Smart Home
Performance |
Timeline |
MCEWEN MINING INC |
Haier Smart Home |
MCEWEN MINING and Haier Smart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and Haier Smart
The main advantage of trading using opposite MCEWEN MINING and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
Haier Smart vs. Sixt Leasing SE | Haier Smart vs. ALGOMA STEEL GROUP | Haier Smart vs. Tianjin Capital Environmental | Haier Smart vs. Perma Fix Environmental Services |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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