Correlation Between Coeur Mining and EJF Investments
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and EJF Investments 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 EJF Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and EJF Investments, you can compare the effects of market volatilities on Coeur Mining and EJF Investments 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 EJF Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and EJF Investments.
Diversification Opportunities for Coeur Mining and EJF Investments
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and EJF is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and EJF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EJF Investments 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 EJF Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EJF Investments has no effect on the direction of Coeur Mining i.e., Coeur Mining and EJF Investments go up and down completely randomly.
Pair Corralation between Coeur Mining and EJF Investments
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.69 times more return on investment than EJF Investments. However, Coeur Mining is 1.69 times more volatile than EJF Investments. It trades about 0.12 of its potential returns per unit of risk. EJF Investments is currently generating about -0.01 per unit of risk. If you would invest 617.00 in Coeur Mining on November 5, 2024 and sell it today you would earn a total of 52.00 from holding Coeur Mining or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. EJF Investments
Performance |
| Timeline |
| Coeur Mining |
| EJF Investments |
Coeur Mining and EJF Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and EJF Investments
The main advantage of trading using opposite Coeur Mining and EJF Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, EJF Investments 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 EJF Investments will offset losses from the drop in EJF Investments' long position.| Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Toyota Motor Corp | Coeur Mining vs. Reliance Industries Ltd |
| EJF Investments vs. Tata Steel Limited | EJF Investments vs. Seche Environnement SA | EJF Investments vs. Symphony Environmental Technologies | EJF Investments vs. Systemair AB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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