Correlation Between Martin Marietta and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Martin Marietta 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 Martin Marietta and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and McEwen Mining, you can compare the effects of market volatilities on Martin Marietta 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 Martin Marietta with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and McEwen Mining.
Diversification Opportunities for Martin Marietta and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Martin and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Martin Marietta 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 Martin Marietta Materials 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 has no effect on the direction of Martin Marietta i.e., Martin Marietta and McEwen Mining go up and down completely randomly.
Pair Corralation between Martin Marietta and McEwen Mining
If you would invest 616,099 in Martin Marietta Materials on March 15, 2024 and sell it today you would earn a total of 434,869 from holding Martin Marietta Materials or generate 70.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.31% |
Values | Daily Returns |
Martin Marietta Materials vs. McEwen Mining
Performance |
Timeline |
Martin Marietta Materials |
McEwen Mining |
Martin Marietta and McEwen Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Martin Marietta and McEwen Mining
The main advantage of trading using opposite Martin Marietta and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta 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.Martin Marietta vs. Internacional de Cermica | Martin Marietta vs. The Select Sector | Martin Marietta vs. Promotora y Operadora | Martin Marietta vs. Intuit Inc |
McEwen Mining vs. Cleveland Cliffs | McEwen Mining vs. The Select Sector | McEwen Mining vs. Promotora y Operadora | McEwen Mining vs. Intuit Inc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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