Correlation Between USWE SPORTS and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Coeur Mining, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Coeur Mining.
Diversification Opportunities for USWE SPORTS and Coeur Mining
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between USWE and Coeur is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and Coeur Mining go up and down completely randomly.
Pair Corralation between USWE SPORTS and Coeur Mining
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 4.74 times more return on investment than Coeur Mining. However, USWE SPORTS is 4.74 times more volatile than Coeur Mining. It trades about 0.35 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.21 per unit of risk. If you would invest 72.00 in USWE SPORTS AB on November 6, 2024 and sell it today you would earn a total of 13.00 from holding USWE SPORTS AB or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. Coeur Mining
Performance |
| Timeline |
| USWE SPORTS AB |
| Coeur Mining |
USWE SPORTS and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Coeur Mining
The main advantage of trading using opposite USWE SPORTS and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. PROSIEBENSAT1 MEDIADR4 | USWE SPORTS vs. GigaMedia | USWE SPORTS vs. ZINC MEDIA GR | USWE SPORTS vs. Fuji Media Holdings |
| Coeur Mining vs. De Grey Mining | Coeur Mining vs. East Africa Metals | Coeur Mining vs. ADRIATIC METALS LS 013355 | Coeur Mining vs. MAGNUM MINING EXP |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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