Correlation Between MCEWEN MINING and ZINZINO AB

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

Diversification Opportunities for MCEWEN MINING and ZINZINO AB

0.31

Correlation Coefficient

MCEWEN MINING  ZINZINO AB

Weak diversification

The 3 months correlation between MCEWEN and ZINZINO is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and ZINZINO AB B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINZINO AB B 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 ZINZINO AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINZINO AB B has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and ZINZINO AB go up and down completely randomly.

Pair Corralation between MCEWEN MINING and ZINZINO AB

Assuming the 90 days horizon MCEWEN MINING is expected to generate 13.12 times less return on investment than ZINZINO AB. In addition to that, MCEWEN MINING is 1.07 times more volatile than ZINZINO AB B. It trades about 0.0 of its total potential returns per unit of risk. ZINZINO AB B is currently generating about 0.05 per unit of volatility. If you would invest  720.00  in ZINZINO AB B on September 13, 2024 and sell it today you would earn a total of  54.00  from holding ZINZINO AB B or generate 7.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

MCEWEN MINING INC  vs.  ZINZINO AB B

MCEWEN MINING INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MCEWEN MINING INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MCEWEN MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ZINZINO AB B

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZINZINO AB B are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ZINZINO AB may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with MCEWEN MINING and ZINZINO AB

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

The idea behind MCEWEN MINING INC and ZINZINO AB B 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.