Correlation Between Avino Silver and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Avino Silver 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 Avino Silver and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avino Silver Gold and McEwen Mining, you can compare the effects of market volatilities on Avino Silver 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 Avino Silver with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and McEwen Mining.
Diversification Opportunities for Avino Silver and McEwen Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Avino and McEwen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Avino Silver 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 Avino Silver Gold 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 Avino Silver i.e., Avino Silver and McEwen Mining go up and down completely randomly.
Pair Corralation between Avino Silver and McEwen Mining
Assuming the 90 days trading horizon Avino Silver is expected to generate 1.44 times less return on investment than McEwen Mining. In addition to that, Avino Silver is 1.05 times more volatile than McEwen Mining. It trades about 0.16 of its total potential returns per unit of risk. McEwen Mining is currently generating about 0.24 per unit of volatility. If you would invest 1,478 in McEwen Mining on July 28, 2025 and sell it today you would earn a total of 1,260 from holding McEwen Mining or generate 85.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avino Silver Gold vs. McEwen Mining
Performance |
| Timeline |
| Avino Silver Gold |
| McEwen Mining |
Avino Silver and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avino Silver and McEwen Mining
The main advantage of trading using opposite Avino Silver and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver 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.| Avino Silver vs. GoGold Resources | Avino Silver vs. AbraSilver Resource Corp | Avino Silver vs. Solaris Resources | Avino Silver vs. Andean Precious Metals |
| McEwen Mining vs. Solaris Resources | McEwen Mining vs. Collective Mining | McEwen Mining vs. AbraSilver Resource Corp | McEwen Mining vs. Avino Silver Gold |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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