Correlation Between Coeur Mining and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Neinor Homes 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 Neinor Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Neinor Homes SA, you can compare the effects of market volatilities on Coeur Mining and Neinor Homes 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 Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Neinor Homes.
Diversification Opportunities for Coeur Mining and Neinor Homes
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coeur and Neinor is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Neinor Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SA 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 Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SA has no effect on the direction of Coeur Mining i.e., Coeur Mining and Neinor Homes go up and down completely randomly.
Pair Corralation between Coeur Mining and Neinor Homes
Assuming the 90 days horizon Coeur Mining is expected to generate 0.47 times more return on investment than Neinor Homes. However, Coeur Mining is 2.11 times less risky than Neinor Homes. It trades about 0.09 of its potential returns per unit of risk. Neinor Homes SA is currently generating about 0.03 per unit of risk. If you would invest 356.00 in Coeur Mining on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Coeur Mining or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Neinor Homes SA
Performance |
| Timeline |
| Coeur Mining |
| Neinor Homes SA |
Coeur Mining and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Neinor Homes
The main advantage of trading using opposite Coeur Mining and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. NMI Holdings | Coeur Mining vs. Origin Agritech | Coeur Mining vs. SIVERS SEMICONDUCTORS AB |
| Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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