Correlation Between Coeur Mining and Capital Metals
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Capital Metals 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 Capital Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Capital Metals PLC, you can compare the effects of market volatilities on Coeur Mining and Capital Metals 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 Capital Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Capital Metals.
Diversification Opportunities for Coeur Mining and Capital Metals
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Capital is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Capital Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Metals PLC 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 Capital Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Metals PLC has no effect on the direction of Coeur Mining i.e., Coeur Mining and Capital Metals go up and down completely randomly.
Pair Corralation between Coeur Mining and Capital Metals
Assuming the 90 days trading horizon Coeur Mining is expected to under-perform the Capital Metals. In addition to that, Coeur Mining is 1.95 times more volatile than Capital Metals PLC. It trades about -0.2 of its total potential returns per unit of risk. Capital Metals PLC is currently generating about -0.32 per unit of volatility. If you would invest 190.00 in Capital Metals PLC on October 10, 2024 and sell it today you would lose (20.00) from holding Capital Metals PLC or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Coeur Mining vs. Capital Metals PLC
Performance |
| Timeline |
| Coeur Mining |
| Capital Metals PLC |
Coeur Mining and Capital Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Capital Metals
The main advantage of trading using opposite Coeur Mining and Capital Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Capital Metals 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 Capital Metals will offset losses from the drop in Capital Metals' long position.| Coeur Mining vs. Cornish Metals | Coeur Mining vs. Wheaton Precious Metals | Coeur Mining vs. Atalaya Mining | Coeur Mining vs. Thor Mining PLC |
| Capital Metals vs. Givaudan SA | Capital Metals vs. Antofagasta PLC | Capital Metals vs. Ferrexpo PLC | Capital Metals vs. Atalaya Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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