Correlation Between Coeur Mining and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and SBM Offshore 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 SBM Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and SBM Offshore NV, you can compare the effects of market volatilities on Coeur Mining and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and SBM Offshore.
Diversification Opportunities for Coeur Mining and SBM Offshore
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and SBM is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Coeur Mining i.e., Coeur Mining and SBM Offshore go up and down completely randomly.
Pair Corralation between Coeur Mining and SBM Offshore
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.33 times more return on investment than SBM Offshore. However, Coeur Mining is 2.33 times more volatile than SBM Offshore NV. It trades about 0.15 of its potential returns per unit of risk. SBM Offshore NV is currently generating about 0.16 per unit of risk. If you would invest 627.00 in Coeur Mining on November 9, 2024 and sell it today you would earn a total of 72.00 from holding Coeur Mining or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. SBM Offshore NV
Performance |
| Timeline |
| Coeur Mining |
| SBM Offshore NV |
Coeur Mining and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and SBM Offshore
The main advantage of trading using opposite Coeur Mining and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore's long position.| Coeur Mining vs. Aeorema Communications Plc | Coeur Mining vs. Sydbank | Coeur Mining vs. Bankers Investment Trust | Coeur Mining vs. Discover Financial Services |
| SBM Offshore vs. Arrow Electronics | SBM Offshore vs. Charter Communications Cl | SBM Offshore vs. Jacquet Metal Service | SBM Offshore vs. Europa Metals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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