Correlation Between AUSTEVOLL SEAFOOD and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD and MCEWEN MINING 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 AUSTEVOLL SEAFOOD and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and MCEWEN MINING INC, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD and MCEWEN MINING 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 AUSTEVOLL SEAFOOD with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and MCEWEN MINING.
Diversification Opportunities for AUSTEVOLL SEAFOOD and MCEWEN MINING
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AUSTEVOLL and MCEWEN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD are associated (or correlated) with MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and MCEWEN MINING go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and MCEWEN MINING
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 0.42 times more return on investment than MCEWEN MINING. However, AUSTEVOLL SEAFOOD is 2.4 times less risky than MCEWEN MINING. It trades about 0.03 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.04 per unit of risk. If you would invest 811.00 in AUSTEVOLL SEAFOOD on September 25, 2024 and sell it today you would earn a total of 15.00 from holding AUSTEVOLL SEAFOOD or generate 1.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. MCEWEN MINING INC
Performance |
Timeline |
AUSTEVOLL SEAFOOD |
MCEWEN MINING INC |
AUSTEVOLL SEAFOOD and MCEWEN MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AUSTEVOLL SEAFOOD and MCEWEN MINING
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Microsoft |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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