Correlation Between Nolato AB and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Nolato AB 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 Nolato AB and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nolato AB ser and Coeur Mining, you can compare the effects of market volatilities on Nolato AB 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 Nolato AB with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nolato AB and Coeur Mining.
Diversification Opportunities for Nolato AB and Coeur Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nolato and Coeur is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nolato AB ser and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Nolato AB 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 Nolato AB ser 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 Nolato AB i.e., Nolato AB and Coeur Mining go up and down completely randomly.
Pair Corralation between Nolato AB and Coeur Mining
Assuming the 90 days trading horizon Nolato AB ser is expected to generate 0.35 times more return on investment than Coeur Mining. However, Nolato AB ser is 2.89 times less risky than Coeur Mining. It trades about -0.08 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.04 per unit of risk. If you would invest 5,565 in Nolato AB ser on August 31, 2024 and sell it today you would lose (150.00) from holding Nolato AB ser or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nolato AB ser vs. Coeur Mining
Performance |
| Timeline |
| Nolato AB ser |
| Coeur Mining |
Nolato AB and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nolato AB and Coeur Mining
The main advantage of trading using opposite Nolato AB and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nolato AB 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.| Nolato AB vs. Coeur Mining | Nolato AB vs. iShares Physical Silver | Nolato AB vs. Silvercorp Metals | Nolato AB vs. Coor Service Management |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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