Correlation Between Coeur Mining and Seed Innovations
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Seed Innovations 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 Seed Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Seed Innovations, you can compare the effects of market volatilities on Coeur Mining and Seed Innovations 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 Seed Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Seed Innovations.
Diversification Opportunities for Coeur Mining and Seed Innovations
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Seed is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Seed Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seed Innovations 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 Seed Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seed Innovations has no effect on the direction of Coeur Mining i.e., Coeur Mining and Seed Innovations go up and down completely randomly.
Pair Corralation between Coeur Mining and Seed Innovations
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.11 times more return on investment than Seed Innovations. However, Coeur Mining is 1.11 times more volatile than Seed Innovations. It trades about 0.05 of its potential returns per unit of risk. Seed Innovations is currently generating about 0.02 per unit of risk. If you would invest 359.00 in Coeur Mining on October 26, 2024 and sell it today you would earn a total of 285.00 from holding Coeur Mining or generate 79.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.01% |
| Values | Daily Returns |
Coeur Mining vs. Seed Innovations
Performance |
| Timeline |
| Coeur Mining |
| Seed Innovations |
Coeur Mining and Seed Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Seed Innovations
The main advantage of trading using opposite Coeur Mining and Seed Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Seed Innovations 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 Seed Innovations will offset losses from the drop in Seed Innovations' long position.| Coeur Mining vs. Rosslyn Data Technologies | Coeur Mining vs. UNIQA Insurance Group | Coeur Mining vs. Wizz Air Holdings | Coeur Mining vs. Silver Bullet Data |
| Seed Innovations vs. Air Products Chemicals | Seed Innovations vs. Bisichi Mining PLC | Seed Innovations vs. Solstad Offshore ASA | Seed Innovations vs. Ecofin Global Utilities |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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