Correlation Between Cairo Communication and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Cairo Communication 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 Cairo Communication and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cairo Communication SpA and Coeur Mining, you can compare the effects of market volatilities on Cairo Communication 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 Cairo Communication with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Communication and Coeur Mining.
Diversification Opportunities for Cairo Communication and Coeur Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cairo and Coeur is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Communication SpA and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Cairo Communication 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 Cairo Communication SpA 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 Cairo Communication i.e., Cairo Communication and Coeur Mining go up and down completely randomly.
Pair Corralation between Cairo Communication and Coeur Mining
Assuming the 90 days trading horizon Cairo Communication SpA is expected to generate 0.39 times more return on investment than Coeur Mining. However, Cairo Communication SpA is 2.56 times less risky than Coeur Mining. It trades about 0.13 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.03 per unit of risk. If you would invest 236.00 in Cairo Communication SpA on October 30, 2024 and sell it today you would earn a total of 17.00 from holding Cairo Communication SpA or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Cairo Communication SpA vs. Coeur Mining
Performance |
| Timeline |
| Cairo Communication SpA |
| Coeur Mining |
Cairo Communication and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cairo Communication and Coeur Mining
The main advantage of trading using opposite Cairo Communication and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Communication 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.| Cairo Communication vs. Centaur Media | Cairo Communication vs. Ubisoft Entertainment | Cairo Communication vs. Aeorema Communications Plc | Cairo Communication vs. Batm Advanced Communications |
| Coeur Mining vs. Beowulf Mining | Coeur Mining vs. PureTech Health plc | Coeur Mining vs. Blackrock World Mining | Coeur Mining vs. Anglo Asian Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |