Correlation Between Coeur Mining and AfriTin Mining
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and AfriTin Mining 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 AfriTin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and AfriTin Mining, you can compare the effects of market volatilities on Coeur Mining and AfriTin Mining 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 AfriTin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and AfriTin Mining.
Diversification Opportunities for Coeur Mining and AfriTin Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and AfriTin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and AfriTin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfriTin Mining 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 AfriTin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfriTin Mining has no effect on the direction of Coeur Mining i.e., Coeur Mining and AfriTin Mining go up and down completely randomly.
Pair Corralation between Coeur Mining and AfriTin Mining
Assuming the 90 days trading horizon Coeur Mining is expected to generate 0.91 times more return on investment than AfriTin Mining. However, Coeur Mining is 1.1 times less risky than AfriTin Mining. It trades about -0.04 of its potential returns per unit of risk. AfriTin Mining is currently generating about -0.27 per unit of risk. If you would invest 687.00 in Coeur Mining on August 31, 2024 and sell it today you would lose (33.00) from holding Coeur Mining or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. AfriTin Mining
Performance |
| Timeline |
| Coeur Mining |
| AfriTin Mining |
Coeur Mining and AfriTin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and AfriTin Mining
The main advantage of trading using opposite Coeur Mining and AfriTin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, AfriTin Mining 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 AfriTin Mining will offset losses from the drop in AfriTin Mining's long position.| Coeur Mining vs. Worldwide Healthcare Trust | Coeur Mining vs. Ecclesiastical Insurance Office | Coeur Mining vs. Spire Healthcare Group | Coeur Mining vs. Eco Animal Health |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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