Correlation Between Coeur Mining and Monks Investment
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Monks 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 Monks 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 Monks Investment Trust, you can compare the effects of market volatilities on Coeur Mining and Monks 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 Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Monks Investment.
Diversification Opportunities for Coeur Mining and Monks Investment
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coeur and Monks is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks 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 Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of Coeur Mining i.e., Coeur Mining and Monks Investment go up and down completely randomly.
Pair Corralation between Coeur Mining and Monks Investment
Assuming the 90 days trading horizon Coeur Mining is expected to generate 3.89 times more return on investment than Monks Investment. However, Coeur Mining is 3.89 times more volatile than Monks Investment Trust. It trades about 0.05 of its potential returns per unit of risk. Monks Investment Trust is currently generating about 0.06 per unit of risk. If you would invest 342.00 in Coeur Mining on September 4, 2024 and sell it today you would earn a total of 276.00 from holding Coeur Mining or generate 80.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Coeur Mining vs. Monks Investment Trust
Performance |
| Timeline |
| Coeur Mining |
| Monks Investment Trust |
Coeur Mining and Monks Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Monks Investment
The main advantage of trading using opposite Coeur Mining and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Monks 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 Monks Investment will offset losses from the drop in Monks Investment's long position.| Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Hyundai Motor | Coeur Mining vs. Toyota Motor Corp |
| Monks Investment vs. SupplyMe Capital PLC | Monks Investment vs. Lloyds Banking Group | Monks Investment vs. Premier African Minerals | Monks Investment vs. SANTANDER UK 8 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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