Correlation Between Coeur Mining and Spirent Communications
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Spirent Communications 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 Spirent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Spirent Communications plc, you can compare the effects of market volatilities on Coeur Mining and Spirent Communications 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 Spirent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Spirent Communications.
Diversification Opportunities for Coeur Mining and Spirent Communications
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Spirent is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Spirent Communications plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirent Communications 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 Spirent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirent Communications has no effect on the direction of Coeur Mining i.e., Coeur Mining and Spirent Communications go up and down completely randomly.
Pair Corralation between Coeur Mining and Spirent Communications
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.05 times more return on investment than Spirent Communications. However, Coeur Mining is 1.05 times more volatile than Spirent Communications plc. It trades about 0.07 of its potential returns per unit of risk. Spirent Communications plc is currently generating about 0.01 per unit of risk. If you would invest 323.00 in Coeur Mining on August 31, 2024 and sell it today you would earn a total of 340.00 from holding Coeur Mining or generate 105.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.95% |
| Values | Daily Returns |
Coeur Mining vs. Spirent Communications plc
Performance |
| Timeline |
| Coeur Mining |
| Spirent Communications |
Coeur Mining and Spirent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Spirent Communications
The main advantage of trading using opposite Coeur Mining and Spirent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Spirent Communications 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 Spirent Communications will offset losses from the drop in Spirent Communications' long position.| Coeur Mining vs. Worldwide Healthcare Trust | Coeur Mining vs. Ecclesiastical Insurance Office | Coeur Mining vs. Spire Healthcare Group | Coeur Mining vs. Eco Animal Health |
| Spirent Communications vs. CVR Energy | Spirent Communications vs. Viridian Therapeutics | Spirent Communications vs. Nationwide Building Society | Spirent Communications vs. News Corp Cl |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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