Correlation Between Coeur Mining and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Griffin 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 Griffin 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 Griffin Mining, you can compare the effects of market volatilities on Coeur Mining and Griffin 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 Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Griffin Mining.
Diversification Opportunities for Coeur Mining and Griffin Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Griffin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin 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 Griffin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffin Mining has no effect on the direction of Coeur Mining i.e., Coeur Mining and Griffin Mining go up and down completely randomly.
Pair Corralation between Coeur Mining and Griffin Mining
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.89 times more return on investment than Griffin Mining. However, Coeur Mining is 1.89 times more volatile than Griffin Mining. It trades about 0.06 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.08 per unit of risk. If you would invest 543.00 in Coeur Mining on November 4, 2024 and sell it today you would earn a total of 126.00 from holding Coeur Mining or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Coeur Mining vs. Griffin Mining
Performance |
| Timeline |
| Coeur Mining |
| Griffin Mining |
Coeur Mining and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Griffin Mining
The main advantage of trading using opposite Coeur Mining and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Griffin 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 Griffin Mining will offset losses from the drop in Griffin Mining's long position.| Coeur Mining vs. Seraphim Space Investment | Coeur Mining vs. Synchrony Financial | Coeur Mining vs. Discover Financial Services | Coeur Mining vs. Kinnevik Investment AB |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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