Correlation Between Eastinco Mining and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining 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 Eastinco Mining and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and Coeur Mining, you can compare the effects of market volatilities on Eastinco Mining 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 Eastinco Mining with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Coeur Mining.
Diversification Opportunities for Eastinco Mining and Coeur Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastinco and Coeur is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Eastinco Mining 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 Eastinco Mining Exploration 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 Eastinco Mining i.e., Eastinco Mining and Coeur Mining go up and down completely randomly.
Pair Corralation between Eastinco Mining and Coeur Mining
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 68.65 times more return on investment than Coeur Mining. However, Eastinco Mining is 68.65 times more volatile than Coeur Mining. It trades about 0.27 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.04 per unit of risk. If you would invest 7,250 in Eastinco Mining Exploration on October 16, 2024 and sell it today you would lose (2,000) from holding Eastinco Mining Exploration or give up 27.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.41% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Coeur Mining
Performance |
| Timeline |
| Eastinco Mining Expl |
| Coeur Mining |
Eastinco Mining and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Coeur Mining
The main advantage of trading using opposite Eastinco Mining and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining 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.| Eastinco Mining vs. Eastman Chemical Co | Eastinco Mining vs. Evolution Gaming Group | Eastinco Mining vs. Tavistock Investments Plc | Eastinco Mining vs. Spirent Communications plc |
| Coeur Mining vs. Eastinco Mining Exploration | Coeur Mining vs. Blackrock World Mining | Coeur Mining vs. Applied Materials | Coeur Mining vs. Hochschild Mining 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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