Correlation Between Uniper SE and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Coeur Mining 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 Uniper SE and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Coeur Mining, you can compare the effects of market volatilities on Uniper SE and Coeur Mining 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 Uniper SE with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Coeur Mining.
Diversification Opportunities for Uniper SE and Coeur Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uniper and Coeur is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Uniper SE 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 Uniper SE are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Uniper SE i.e., Uniper SE and Coeur Mining go up and down completely randomly.
Pair Corralation between Uniper SE and Coeur Mining
Assuming the 90 days trading horizon Uniper SE is expected to generate 10.03 times less return on investment than Coeur Mining. In addition to that, Uniper SE is 1.06 times more volatile than Coeur Mining. It trades about 0.01 of its total potential returns per unit of risk. Coeur Mining is currently generating about 0.05 per unit of volatility. If you would invest 336.00 in Coeur Mining on September 3, 2024 and sell it today you would earn a total of 327.00 from holding Coeur Mining or generate 97.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Uniper SE vs. Coeur Mining
Performance |
| Timeline |
| Uniper SE |
| Coeur Mining |
Uniper SE and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Coeur Mining
The main advantage of trading using opposite Uniper SE and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Uniper SE vs. Bytes Technology | Uniper SE vs. Livermore Investments Group | Uniper SE vs. FC Investment Trust | Uniper SE vs. Universal Display Corp |
| Coeur Mining vs. Silvercorp Metals | Coeur Mining vs. Liberty Media Corp | Coeur Mining vs. Centaur Media | Coeur Mining vs. Empire Metals Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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