Correlation Between Coeur Mining and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Atalaya 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 Atalaya 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 Atalaya Mining, you can compare the effects of market volatilities on Coeur Mining and Atalaya 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 Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Atalaya Mining.
Diversification Opportunities for Coeur Mining and Atalaya Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Atalaya is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya 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 Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Coeur Mining i.e., Coeur Mining and Atalaya Mining go up and down completely randomly.
Pair Corralation between Coeur Mining and Atalaya Mining
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.75 times more return on investment than Atalaya Mining. However, Coeur Mining is 1.75 times more volatile than Atalaya Mining. It trades about 0.05 of its potential returns per unit of risk. Atalaya Mining is currently generating about 0.01 per unit of risk. If you would invest 363.00 in Coeur Mining on October 25, 2024 and sell it today you would earn a total of 262.00 from holding Coeur Mining or generate 72.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.01% |
| Values | Daily Returns |
Coeur Mining vs. Atalaya Mining
Performance |
| Timeline |
| Coeur Mining |
| Atalaya Mining |
Coeur Mining and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Atalaya Mining
The main advantage of trading using opposite Coeur Mining and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Atalaya 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Coeur Mining vs. Rosslyn Data Technologies | Coeur Mining vs. UNIQA Insurance Group | Coeur Mining vs. Wizz Air Holdings | Coeur Mining vs. Silver Bullet Data |
| Atalaya Mining vs. Commerzbank AG | Atalaya Mining vs. Discover Financial Services | Atalaya Mining vs. Charter Communications Cl | Atalaya Mining vs. Raymond James Financial |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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