Correlation Between Coeur Mining and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Kinnevik Investment 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 Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Kinnevik Investment AB, you can compare the effects of market volatilities on Coeur Mining and Kinnevik Investment 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Kinnevik Investment.
Diversification Opportunities for Coeur Mining and Kinnevik Investment
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Kinnevik is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Coeur Mining i.e., Coeur Mining and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Coeur Mining and Kinnevik Investment
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.72 times more return on investment than Kinnevik Investment. However, Coeur Mining is 2.72 times more volatile than Kinnevik Investment AB. It trades about 0.18 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about 0.32 per unit of risk. If you would invest 612.00 in Coeur Mining on September 14, 2024 and sell it today you would earn a total of 91.00 from holding Coeur Mining or generate 14.87% 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. Kinnevik Investment AB
Performance |
| Timeline |
| Coeur Mining |
| Kinnevik Investment |
Coeur Mining and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Kinnevik Investment
The main advantage of trading using opposite Coeur Mining and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Coeur Mining vs. Wizz Air Holdings | Coeur Mining vs. Pentair PLC | Coeur Mining vs. Albion Technology General | Coeur Mining vs. Amedeo Air Four |
| Kinnevik Investment vs. Caledonia Mining | Kinnevik Investment vs. Lundin Mining Corp | Kinnevik Investment vs. Coeur Mining | Kinnevik Investment vs. Universal Music Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |