Correlation Between Coeur Mining and Neometals
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Neometals 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 Neometals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Neometals, you can compare the effects of market volatilities on Coeur Mining and Neometals 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 Neometals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Neometals.
Diversification Opportunities for Coeur Mining and Neometals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Neometals is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Neometals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neometals 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 Neometals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neometals has no effect on the direction of Coeur Mining i.e., Coeur Mining and Neometals go up and down completely randomly.
Pair Corralation between Coeur Mining and Neometals
Assuming the 90 days trading horizon Coeur Mining is expected to generate 0.55 times more return on investment than Neometals. However, Coeur Mining is 1.81 times less risky than Neometals. It trades about -0.15 of its potential returns per unit of risk. Neometals is currently generating about -0.11 per unit of risk. If you would invest 605.00 in Coeur Mining on November 28, 2024 and sell it today you would lose (95.00) from holding Coeur Mining or give up 15.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.27% |
| Values | Daily Returns |
Coeur Mining vs. Neometals
Performance |
| Timeline |
| Coeur Mining |
| Neometals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Coeur Mining and Neometals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Neometals
The main advantage of trading using opposite Coeur Mining and Neometals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Neometals 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 Neometals will offset losses from the drop in Neometals' long position.| Coeur Mining vs. Home Depot | Coeur Mining vs. Weiss Korea Opportunity | Coeur Mining vs. River and Mercantile | Coeur Mining vs. Chrysalis Investments |
| Neometals vs. Spirent Communications plc | Neometals vs. Litigation Capital Management | Neometals vs. Science in Sport | Neometals vs. Cairo Communication SpA |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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