Correlation Between Coeur Mining and United Airlines
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and United Airlines 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 Airlines 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 Airlines Holdings, you can compare the effects of market volatilities on Coeur Mining and United Airlines 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 Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and United Airlines.
Diversification Opportunities for Coeur Mining and United Airlines
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coeur and United is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings 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 Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of Coeur Mining i.e., Coeur Mining and United Airlines go up and down completely randomly.
Pair Corralation between Coeur Mining and United Airlines
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.5 times less return on investment than United Airlines. In addition to that, Coeur Mining is 1.58 times more volatile than United Airlines Holdings. It trades about 0.05 of its total potential returns per unit of risk. United Airlines Holdings is currently generating about 0.19 per unit of volatility. If you would invest 5,269 in United Airlines Holdings on August 31, 2024 and sell it today you would earn a total of 4,371 from holding United Airlines Holdings or generate 82.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. United Airlines Holdings
Performance |
| Timeline |
| Coeur Mining |
| United Airlines Holdings |
Coeur Mining and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and United Airlines
The main advantage of trading using opposite Coeur Mining and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, United Airlines 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 Airlines will offset losses from the drop in United Airlines' long position.| Coeur Mining vs. Worldwide Healthcare Trust | Coeur Mining vs. Ecclesiastical Insurance Office | Coeur Mining vs. Spire Healthcare Group | Coeur Mining vs. Eco Animal Health |
| United Airlines vs. Neometals | United Airlines vs. Coor Service Management | United Airlines vs. Aeorema Communications Plc | United Airlines vs. JLEN Environmental Assets |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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