Correlation Between Coeur Mining and Volkswagen
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Volkswagen 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 Volkswagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Volkswagen AG Non Vtg, you can compare the effects of market volatilities on Coeur Mining and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Volkswagen.
Diversification Opportunities for Coeur Mining and Volkswagen
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Volkswagen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Volkswagen AG Non Vtg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG Non 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG Non has no effect on the direction of Coeur Mining i.e., Coeur Mining and Volkswagen go up and down completely randomly.
Pair Corralation between Coeur Mining and Volkswagen
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.91 times more return on investment than Volkswagen. However, Coeur Mining is 2.91 times more volatile than Volkswagen AG Non Vtg. It trades about 0.12 of its potential returns per unit of risk. Volkswagen AG Non Vtg is currently generating about 0.19 per unit of risk. If you would invest 617.00 in Coeur Mining on November 6, 2024 and sell it today you would earn a total of 52.00 from holding Coeur Mining or generate 8.43% 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. Volkswagen AG Non Vtg
Performance |
| Timeline |
| Coeur Mining |
| Volkswagen AG Non |
Coeur Mining and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Volkswagen
The main advantage of trading using opposite Coeur Mining and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| Coeur Mining vs. Jacquet Metal Service | Coeur Mining vs. Wheaton Precious Metals | Coeur Mining vs. Fevertree Drinks Plc | Coeur Mining vs. SBM Offshore NV |
| Volkswagen vs. Impax Asset Management | Volkswagen vs. Gaming Realms plc | Volkswagen vs. Software Circle plc | Volkswagen vs. Roper Technologies |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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