Correlation Between Coeur Mining and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Flow Traders 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 Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Flow Traders NV, you can compare the effects of market volatilities on Coeur Mining and Flow Traders 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 Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Flow Traders.
Diversification Opportunities for Coeur Mining and Flow Traders
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Flow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Flow Traders NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders 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 Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders NV has no effect on the direction of Coeur Mining i.e., Coeur Mining and Flow Traders go up and down completely randomly.
Pair Corralation between Coeur Mining and Flow Traders
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.62 times less return on investment than Flow Traders. In addition to that, Coeur Mining is 1.86 times more volatile than Flow Traders NV. It trades about 0.06 of its total potential returns per unit of risk. Flow Traders NV is currently generating about 0.27 per unit of volatility. If you would invest 2,203 in Flow Traders NV on October 21, 2024 and sell it today you would earn a total of 182.00 from holding Flow Traders NV or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Coeur Mining vs. Flow Traders NV
Performance |
| Timeline |
| Coeur Mining |
| Flow Traders NV |
Coeur Mining and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Flow Traders
The main advantage of trading using opposite Coeur Mining and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Flow Traders 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 Flow Traders will offset losses from the drop in Flow Traders' long position.| Coeur Mining vs. Lindsell Train Investment | Coeur Mining vs. Cembra Money Bank | Coeur Mining vs. Berner Kantonalbank AG | Coeur Mining vs. Smithson Investment Trust |
| Flow Traders vs. Monks Investment Trust | Flow Traders vs. Livermore Investments Group | Flow Traders vs. EJF Investments | Flow Traders vs. United Internet AG |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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