Correlation Between Coeur Mining and New Residential
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and New Residential 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 New Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and New Residential Investment, you can compare the effects of market volatilities on Coeur Mining and New Residential 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 New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and New Residential.
Diversification Opportunities for Coeur Mining and New Residential
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and New is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve 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 New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of Coeur Mining i.e., Coeur Mining and New Residential go up and down completely randomly.
Pair Corralation between Coeur Mining and New Residential
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.68 times more return on investment than New Residential. However, Coeur Mining is 1.68 times more volatile than New Residential Investment. It trades about 0.06 of its potential returns per unit of risk. New Residential Investment is currently generating about 0.04 per unit of risk. If you would invest 337.00 in Coeur Mining on November 2, 2024 and sell it today you would earn a total of 354.00 from holding Coeur Mining or generate 105.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Coeur Mining vs. New Residential Investment
Performance |
| Timeline |
| Coeur Mining |
| New Residential Inve |
Coeur Mining and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and New Residential
The main advantage of trading using opposite Coeur Mining and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| Coeur Mining vs. Applied Materials | Coeur Mining vs. Indutrade AB | Coeur Mining vs. Auto Trader Group | Coeur Mining vs. Morgan Advanced Materials |
| New Residential vs. MyHealthChecked Plc | New Residential vs. Gamma Communications PLC | New Residential vs. CVS Health Corp | New Residential vs. Planet Fitness Cl |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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