Correlation Between Coeur Mining and Alliance Data
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Alliance Data 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 Alliance Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Alliance Data Systems, you can compare the effects of market volatilities on Coeur Mining and Alliance Data 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 Alliance Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Alliance Data.
Diversification Opportunities for Coeur Mining and Alliance Data
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Alliance is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Alliance Data Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Data Systems 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 Alliance Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Data Systems has no effect on the direction of Coeur Mining i.e., Coeur Mining and Alliance Data go up and down completely randomly.
Pair Corralation between Coeur Mining and Alliance Data
Assuming the 90 days trading horizon Coeur Mining is expected to under-perform the Alliance Data. In addition to that, Coeur Mining is 1.76 times more volatile than Alliance Data Systems. It trades about -0.16 of its total potential returns per unit of risk. Alliance Data Systems is currently generating about -0.27 per unit of volatility. If you would invest 6,478 in Alliance Data Systems on October 11, 2024 and sell it today you would lose (571.00) from holding Alliance Data Systems or give up 8.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Coeur Mining vs. Alliance Data Systems
Performance |
| Timeline |
| Coeur Mining |
| Alliance Data Systems |
Coeur Mining and Alliance Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Alliance Data
The main advantage of trading using opposite Coeur Mining and Alliance Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Alliance Data 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 Alliance Data will offset losses from the drop in Alliance Data's long position.| Coeur Mining vs. Cairn Homes PLC | Coeur Mining vs. Erste Group Bank | Coeur Mining vs. Ecclesiastical Insurance Office | Coeur Mining vs. Home Depot |
| Alliance Data vs. Hochschild Mining plc | Alliance Data vs. New Residential Investment | Alliance Data vs. Europa Metals | Alliance Data vs. Coeur 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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