Correlation Between AMG Advanced and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Coeur 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 AMG Advanced and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and Coeur Mining, you can compare the effects of market volatilities on AMG Advanced and Coeur 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 AMG Advanced with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Coeur Mining.
Diversification Opportunities for AMG Advanced and Coeur Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMG and Coeur is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of AMG Advanced i.e., AMG Advanced and Coeur Mining go up and down completely randomly.
Pair Corralation between AMG Advanced and Coeur Mining
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, AMG Advanced Metallurgical is 1.61 times less risky than Coeur Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Coeur Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Coeur Mining on September 2, 2024 and sell it today you would earn a total of 341.00 from holding Coeur Mining or generate 105.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Coeur Mining
Performance |
| Timeline |
| AMG Advanced Metallu |
| Coeur Mining |
AMG Advanced and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Coeur Mining
The main advantage of trading using opposite AMG Advanced and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Coeur 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| AMG Advanced vs. Uniper SE | AMG Advanced vs. Mulberry Group PLC | AMG Advanced vs. London Security Plc | AMG Advanced vs. Triad Group PLC |
| Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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