Correlation Between Coeur Mining and FC Investment
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and FC Investment 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 FC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and FC Investment Trust, you can compare the effects of market volatilities on Coeur Mining and FC Investment 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 FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and FC Investment.
Diversification Opportunities for Coeur Mining and FC Investment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and FCIT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and FC Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FC Investment Trust 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 FC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FC Investment Trust has no effect on the direction of Coeur Mining i.e., Coeur Mining and FC Investment go up and down completely randomly.
Pair Corralation between Coeur Mining and FC Investment
Assuming the 90 days trading horizon Coeur Mining is expected to generate 3.97 times more return on investment than FC Investment. However, Coeur Mining is 3.97 times more volatile than FC Investment Trust. It trades about 0.12 of its potential returns per unit of risk. FC Investment Trust is currently generating about 0.27 per unit of risk. If you would invest 617.00 in Coeur Mining on November 7, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. FC Investment Trust
Performance |
| Timeline |
| Coeur Mining |
| FC Investment Trust |
Coeur Mining and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and FC Investment
The main advantage of trading using opposite Coeur Mining and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, FC Investment 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 FC Investment will offset losses from the drop in FC Investment's 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 |
| FC Investment vs. AMG Advanced Metallurgical | FC Investment vs. JB Hunt Transport | FC Investment vs. Eastinco Mining Exploration | FC Investment vs. British American Tobacco |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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