Correlation Between VITEC SOFTWARE and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both VITEC SOFTWARE 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 VITEC SOFTWARE and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VITEC SOFTWARE GROUP and Coeur Mining, you can compare the effects of market volatilities on VITEC SOFTWARE 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 VITEC SOFTWARE with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of VITEC SOFTWARE and Coeur Mining.
Diversification Opportunities for VITEC SOFTWARE and Coeur Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between VITEC and Coeur is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding VITEC SOFTWARE GROUP and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and VITEC SOFTWARE 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 VITEC SOFTWARE GROUP 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 VITEC SOFTWARE i.e., VITEC SOFTWARE and Coeur Mining go up and down completely randomly.
Pair Corralation between VITEC SOFTWARE and Coeur Mining
Assuming the 90 days horizon VITEC SOFTWARE GROUP is expected to generate 3.34 times more return on investment than Coeur Mining. However, VITEC SOFTWARE is 3.34 times more volatile than Coeur Mining. It trades about 0.04 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.1 per unit of risk. If you would invest 4,550 in VITEC SOFTWARE GROUP on October 20, 2024 and sell it today you would earn a total of 72.00 from holding VITEC SOFTWARE GROUP or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VITEC SOFTWARE GROUP vs. Coeur Mining
Performance |
| Timeline |
| VITEC SOFTWARE GROUP |
| Coeur Mining |
VITEC SOFTWARE and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VITEC SOFTWARE and Coeur Mining
The main advantage of trading using opposite VITEC SOFTWARE and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VITEC SOFTWARE 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.| VITEC SOFTWARE vs. LPKF Laser Electronics | VITEC SOFTWARE vs. TT Electronics PLC | VITEC SOFTWARE vs. ALERION CLEANPOWER | VITEC SOFTWARE vs. Delta Electronics Public |
| Coeur Mining vs. De Grey Mining | Coeur Mining vs. HOCHSCHILD MINING | Coeur Mining vs. Jacquet Metal Service | Coeur Mining vs. Calibre Mining Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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