Correlation Between Coeur Mining and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Beyond Meat 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 Coeur Mining and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Beyond Meat, you can compare the effects of market volatilities on Coeur Mining and Beyond Meat 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 Coeur Mining with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Beyond Meat.
Diversification Opportunities for Coeur Mining and Beyond Meat
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and Beyond is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Coeur 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 Coeur Mining are associated (or correlated) with Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of Coeur Mining i.e., Coeur Mining and Beyond Meat go up and down completely randomly.
Pair Corralation between Coeur Mining and Beyond Meat
Assuming the 90 days horizon Coeur Mining is expected to generate 0.35 times more return on investment than Beyond Meat. However, Coeur Mining is 2.87 times less risky than Beyond Meat. It trades about -0.05 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.16 per unit of risk. If you would invest 372.00 in Coeur Mining on August 28, 2024 and sell it today you would lose (12.00) from holding Coeur Mining or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Beyond Meat
Performance |
| Timeline |
| Coeur Mining |
| Beyond Meat |
Coeur Mining and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Beyond Meat
The main advantage of trading using opposite Coeur Mining and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.| Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. NMI Holdings | Coeur Mining vs. Origin Agritech | Coeur Mining vs. SIVERS SEMICONDUCTORS AB |
| Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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