Correlation Between Coeur Mining and Wizz Air
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Wizz Air 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 Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Wizz Air Holdings, you can compare the effects of market volatilities on Coeur Mining and Wizz Air 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 Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Wizz Air.
Diversification Opportunities for Coeur Mining and Wizz Air
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Wizz is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Wizz Air Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wizz Air Holdings 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 Wizz Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wizz Air Holdings has no effect on the direction of Coeur Mining i.e., Coeur Mining and Wizz Air go up and down completely randomly.
Pair Corralation between Coeur Mining and Wizz Air
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.27 times more return on investment than Wizz Air. However, Coeur Mining is 1.27 times more volatile than Wizz Air Holdings. It trades about 0.1 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.01 per unit of risk. If you would invest 258.00 in Coeur Mining on September 14, 2024 and sell it today you would earn a total of 400.00 from holding Coeur Mining or generate 155.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.91% |
| Values | Daily Returns |
Coeur Mining vs. Wizz Air Holdings
Performance |
| Timeline |
| Coeur Mining |
| Wizz Air Holdings |
Coeur Mining and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Wizz Air
The main advantage of trading using opposite Coeur Mining and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Wizz Air 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 Wizz Air will offset losses from the drop in Wizz Air's long position.| Coeur Mining vs. Wizz Air Holdings | Coeur Mining vs. Pentair PLC | Coeur Mining vs. Albion Technology General | Coeur Mining vs. Amedeo Air Four |
| Wizz Air vs. Catalyst Media Group | Wizz Air vs. Roebuck Food Group | Wizz Air vs. MediaZest plc | Wizz Air vs. JD Sports Fashion |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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