Correlation Between Coeur Mining and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and LPKF Laser 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 LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and LPKF Laser Electronics, you can compare the effects of market volatilities on Coeur Mining and LPKF Laser 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 LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and LPKF Laser.
Diversification Opportunities for Coeur Mining and LPKF Laser
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and LPKF is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and LPKF Laser Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPKF Laser Electronics 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 LPKF Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPKF Laser Electronics has no effect on the direction of Coeur Mining i.e., Coeur Mining and LPKF Laser go up and down completely randomly.
Pair Corralation between Coeur Mining and LPKF Laser
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.82 times more return on investment than LPKF Laser. However, Coeur Mining is 1.82 times more volatile than LPKF Laser Electronics. It trades about 0.05 of its potential returns per unit of risk. LPKF Laser Electronics is currently generating about -0.01 per unit of risk. If you would invest 336.00 in Coeur Mining on September 3, 2024 and sell it today you would earn a total of 327.00 from holding Coeur Mining or generate 97.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Coeur Mining vs. LPKF Laser Electronics
Performance |
| Timeline |
| Coeur Mining |
| LPKF Laser Electronics |
Coeur Mining and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and LPKF Laser
The main advantage of trading using opposite Coeur Mining and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, LPKF Laser 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 LPKF Laser will offset losses from the drop in LPKF Laser's long position.| Coeur Mining vs. Silvercorp Metals | Coeur Mining vs. Liberty Media Corp | Coeur Mining vs. Centaur Media | Coeur Mining vs. Empire Metals Limited |
| LPKF Laser vs. Catalyst Media Group | LPKF Laser vs. CATLIN GROUP | LPKF Laser vs. Magnora ASA | LPKF Laser vs. RTW Venture Fund |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |