Correlation Between Coeur Mining and Nasdaq
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Nasdaq 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 Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Nasdaq Inc, you can compare the effects of market volatilities on Coeur Mining and Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Nasdaq.
Diversification Opportunities for Coeur Mining and Nasdaq
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Nasdaq is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of Coeur Mining i.e., Coeur Mining and Nasdaq go up and down completely randomly.
Pair Corralation between Coeur Mining and Nasdaq
Assuming the 90 days trading horizon Coeur Mining is expected to generate 10.21 times less return on investment than Nasdaq. But when comparing it to its historical volatility, Coeur Mining is 8.75 times less risky than Nasdaq. It trades about 0.09 of its potential returns per unit of risk. Nasdaq Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,227 in Nasdaq Inc on September 12, 2024 and sell it today you would earn a total of 844.00 from holding Nasdaq Inc or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Nasdaq Inc
Performance |
| Timeline |
| Coeur Mining |
| Nasdaq Inc |
Coeur Mining and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Nasdaq
The main advantage of trading using opposite Coeur Mining and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq's long position.| Coeur Mining vs. iShares Physical Silver | Coeur Mining vs. Gamma Communications PLC | Coeur Mining vs. Thor Mining PLC | Coeur Mining vs. Caledonia Mining |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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