Correlation Between Alamos Gold and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Alamos Gold 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 Alamos Gold and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alamos Gold and Coeur Mining, you can compare the effects of market volatilities on Alamos Gold 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 Alamos Gold with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alamos Gold and Coeur Mining.
Diversification Opportunities for Alamos Gold and Coeur Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alamos and Coeur is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alamos Gold and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Alamos Gold 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 Alamos Gold 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 Alamos Gold i.e., Alamos Gold and Coeur Mining go up and down completely randomly.
Pair Corralation between Alamos Gold and Coeur Mining
Considering the 90-day investment horizon Alamos Gold is expected to generate 1.78 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Alamos Gold is 2.06 times less risky than Coeur Mining. It trades about 0.05 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Coeur Mining on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Coeur Mining or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alamos Gold vs. Coeur Mining
Performance |
| Timeline |
| Alamos Gold |
| Coeur Mining |
Alamos Gold and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alamos Gold and Coeur Mining
The main advantage of trading using opposite Alamos Gold and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alamos Gold 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.| Alamos Gold vs. Pan American Silver | Alamos Gold vs. Newmont Goldcorp Corp | Alamos Gold vs. Wheaton Precious Metals | Alamos Gold vs. Franco Nevada |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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