Correlation Between Bloomsbury Publishing and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing 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 Bloomsbury Publishing and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and Coeur Mining, you can compare the effects of market volatilities on Bloomsbury Publishing 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 Bloomsbury Publishing with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and Coeur Mining.
Diversification Opportunities for Bloomsbury Publishing and Coeur Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bloomsbury and Coeur is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Bloomsbury Publishing 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 Bloomsbury Publishing 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 Bloomsbury Publishing i.e., Bloomsbury Publishing and Coeur Mining go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and Coeur Mining
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to generate 0.25 times more return on investment than Coeur Mining. However, Bloomsbury Publishing Plc is 3.93 times less risky than Coeur Mining. It trades about -0.32 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.4 per unit of risk. If you would invest 65,400 in Bloomsbury Publishing Plc on December 1, 2024 and sell it today you would lose (4,400) from holding Bloomsbury Publishing Plc or give up 6.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomsbury Publishing Plc vs. Coeur Mining
Performance |
| Timeline |
| Bloomsbury Publishing Plc |
| Coeur Mining |
Bloomsbury Publishing and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomsbury Publishing and Coeur Mining
The main advantage of trading using opposite Bloomsbury Publishing and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing 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.| Bloomsbury Publishing vs. Eastinco Mining Exploration | Bloomsbury Publishing vs. Atalaya Mining | Bloomsbury Publishing vs. Liontrust Asset Management | Bloomsbury Publishing vs. Waste Management |
| Coeur Mining vs. Central Asia Metals | Coeur Mining vs. Jacquet Metal Service | Coeur Mining vs. Beowulf Mining | Coeur Mining vs. Critical Metals 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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