Correlation Between Abcourt Mines and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Abcourt Mines 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 Abcourt Mines and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcourt Mines and Coeur Mining, you can compare the effects of market volatilities on Abcourt Mines 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 Abcourt Mines with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcourt Mines and Coeur Mining.
Diversification Opportunities for Abcourt Mines and Coeur Mining
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Abcourt and Coeur is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Abcourt Mines and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Abcourt Mines 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 Abcourt Mines 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 Abcourt Mines i.e., Abcourt Mines and Coeur Mining go up and down completely randomly.
Pair Corralation between Abcourt Mines and Coeur Mining
Assuming the 90 days horizon Abcourt Mines is expected to generate 2.52 times more return on investment than Coeur Mining. However, Abcourt Mines is 2.52 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 0.05 per unit of risk. If you would invest 6.00 in Abcourt Mines on November 29, 2024 and sell it today you would lose (3.00) from holding Abcourt Mines or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcourt Mines vs. Coeur Mining
Performance |
| Timeline |
| Abcourt Mines |
| Coeur Mining |
Abcourt Mines and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcourt Mines and Coeur Mining
The main advantage of trading using opposite Abcourt Mines and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcourt Mines 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.| Abcourt Mines vs. Argo Gold | Abcourt Mines vs. Blue Star Gold | Abcourt Mines vs. Minnova Corp | Abcourt Mines vs. Angkor Resources Corp |
| Coeur Mining vs. Equinox Gold Corp | Coeur Mining vs. B2Gold Corp | Coeur Mining vs. Sandstorm Gold Ltd | Coeur Mining vs. Pan American Silver |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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