Correlation Between Abrdn PLC and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Abrdn PLC 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 Abrdn PLC and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn PLC and Coeur Mining, you can compare the effects of market volatilities on Abrdn PLC 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 Abrdn PLC with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn PLC and Coeur Mining.
Diversification Opportunities for Abrdn PLC and Coeur Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Abrdn and Coeur is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn PLC and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Abrdn PLC 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 Abrdn PLC 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 Abrdn PLC i.e., Abrdn PLC and Coeur Mining go up and down completely randomly.
Pair Corralation between Abrdn PLC and Coeur Mining
Assuming the 90 days trading horizon Abrdn PLC is expected to generate 1.35 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Abrdn PLC is 2.66 times less risky than Coeur Mining. It trades about 0.22 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 616.00 in Coeur Mining on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Coeur Mining or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn PLC vs. Coeur Mining
Performance |
| Timeline |
| Abrdn PLC |
| Coeur Mining |
Abrdn PLC and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn PLC and Coeur Mining
The main advantage of trading using opposite Abrdn PLC and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn PLC 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.| Abrdn PLC vs. Samsung Electronics Co | Abrdn PLC vs. Samsung Electronics Co | Abrdn PLC vs. Hyundai Motor | Abrdn PLC vs. Toyota Motor Corp |
| Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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