Correlation Between Coeur Mining and United Internet
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and United Internet 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 Coeur Mining and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and United Internet AG, you can compare the effects of market volatilities on Coeur Mining and United Internet 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 Coeur Mining with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and United Internet.
Diversification Opportunities for Coeur Mining and United Internet
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and United is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Coeur Mining 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 Coeur Mining are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Coeur Mining i.e., Coeur Mining and United Internet go up and down completely randomly.
Pair Corralation between Coeur Mining and United Internet
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.84 times more return on investment than United Internet. However, Coeur Mining is 1.84 times more volatile than United Internet AG. It trades about 0.11 of its potential returns per unit of risk. United Internet AG is currently generating about -0.07 per unit of risk. If you would invest 274.00 in Coeur Mining on August 28, 2024 and sell it today you would earn a total of 349.00 from holding Coeur Mining or generate 127.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.06% |
| Values | Daily Returns |
Coeur Mining vs. United Internet AG
Performance |
| Timeline |
| Coeur Mining |
| United Internet AG |
Coeur Mining and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and United Internet
The main advantage of trading using opposite Coeur Mining and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Hyundai Motor | Coeur Mining vs. Toyota Motor Corp |
| United Internet vs. Silvercorp Metals | United Internet vs. Gaming Realms plc | United Internet vs. Naked Wines plc | United Internet vs. Neometals |
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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