Correlation Between MCEWEN MINING and Marriott International
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Marriott International 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 Marriott International 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 Marriott International, you can compare the effects of market volatilities on MCEWEN MINING and Marriott International 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 Marriott International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Marriott International.
Diversification Opportunities for MCEWEN MINING and Marriott International
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Marriott is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Marriott International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriott International 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 Marriott International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriott International has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Marriott International go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Marriott International
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Marriott International. In addition to that, MCEWEN MINING is 2.57 times more volatile than Marriott International. It trades about -0.04 of its total potential returns per unit of risk. Marriott International is currently generating about -0.1 per unit of volatility. If you would invest 27,565 in Marriott International on September 25, 2024 and sell it today you would lose (855.00) from holding Marriott International or give up 3.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
MCEWEN MINING INC vs. Marriott International
Performance |
Timeline |
MCEWEN MINING INC |
Marriott International |
MCEWEN MINING and Marriott International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and Marriott International
The main advantage of trading using opposite MCEWEN MINING and Marriott International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Marriott International 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 Marriott International will offset losses from the drop in Marriott International's long position.MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. THARISA NON LIST | MCEWEN MINING vs. SYLVANIA PLAT DL |
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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 Stocks Directory module to find actively traded stocks across global markets.
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