Correlation Between Coeur Mining and Aberforth Smaller
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Aberforth Smaller 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 Aberforth Smaller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Aberforth Smaller Companies, you can compare the effects of market volatilities on Coeur Mining and Aberforth Smaller 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 Aberforth Smaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Aberforth Smaller.
Diversification Opportunities for Coeur Mining and Aberforth Smaller
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Aberforth is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Aberforth Smaller Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberforth Smaller 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 Aberforth Smaller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberforth Smaller has no effect on the direction of Coeur Mining i.e., Coeur Mining and Aberforth Smaller go up and down completely randomly.
Pair Corralation between Coeur Mining and Aberforth Smaller
Assuming the 90 days trading horizon Coeur Mining is expected to generate 4.29 times more return on investment than Aberforth Smaller. However, Coeur Mining is 4.29 times more volatile than Aberforth Smaller Companies. It trades about 0.06 of its potential returns per unit of risk. Aberforth Smaller Companies is currently generating about -0.06 per unit of risk. If you would invest 543.00 in Coeur Mining on November 4, 2024 and sell it today you would earn a total of 126.00 from holding Coeur Mining or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Coeur Mining vs. Aberforth Smaller Companies
Performance |
| Timeline |
| Coeur Mining |
| Aberforth Smaller |
Coeur Mining and Aberforth Smaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Aberforth Smaller
The main advantage of trading using opposite Coeur Mining and Aberforth Smaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Aberforth Smaller 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 Aberforth Smaller will offset losses from the drop in Aberforth Smaller's long position.| Coeur Mining vs. Seraphim Space Investment | Coeur Mining vs. Synchrony Financial | Coeur Mining vs. Discover Financial Services | Coeur Mining vs. Kinnevik Investment AB |
| Aberforth Smaller vs. UNIQA Insurance Group | Aberforth Smaller vs. Liechtensteinische Landesbank AG | Aberforth Smaller vs. Discover Financial Services | Aberforth Smaller vs. MT Bank Corp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |