Correlation Between Coeur Mining and Whitbread PLC
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Whitbread PLC 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 Whitbread PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Whitbread PLC, you can compare the effects of market volatilities on Coeur Mining and Whitbread PLC 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 Whitbread PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Whitbread PLC.
Diversification Opportunities for Coeur Mining and Whitbread PLC
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and Whitbread is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Whitbread PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitbread PLC 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 Whitbread PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitbread PLC has no effect on the direction of Coeur Mining i.e., Coeur Mining and Whitbread PLC go up and down completely randomly.
Pair Corralation between Coeur Mining and Whitbread PLC
Assuming the 90 days trading horizon Coeur Mining is expected to generate 3.22 times more return on investment than Whitbread PLC. However, Coeur Mining is 3.22 times more volatile than Whitbread PLC. It trades about 0.12 of its potential returns per unit of risk. Whitbread PLC is currently generating about -0.02 per unit of risk. If you would invest 291.00 in Coeur Mining on September 1, 2024 and sell it today you would earn a total of 372.00 from holding Coeur Mining or generate 127.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Coeur Mining vs. Whitbread PLC
Performance |
| Timeline |
| Coeur Mining |
| Whitbread PLC |
Coeur Mining and Whitbread PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Whitbread PLC
The main advantage of trading using opposite Coeur Mining and Whitbread PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Whitbread PLC 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 Whitbread PLC will offset losses from the drop in Whitbread PLC's long position.| Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group PLC |
| Whitbread PLC vs. Viridian Therapeutics | Whitbread PLC vs. CVR Energy | Whitbread PLC vs. Nationwide Building Society | Whitbread PLC vs. Dollar Tree |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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