Correlation Between Coeur Mining and Major Drilling
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Major Drilling 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 Major Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Major Drilling Group, you can compare the effects of market volatilities on Coeur Mining and Major Drilling 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 Major Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Major Drilling.
Diversification Opportunities for Coeur Mining and Major Drilling
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Major is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Major Drilling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Drilling Group 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 Major Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Drilling Group has no effect on the direction of Coeur Mining i.e., Coeur Mining and Major Drilling go up and down completely randomly.
Pair Corralation between Coeur Mining and Major Drilling
Assuming the 90 days horizon Coeur Mining is expected to under-perform the Major Drilling. But the stock apears to be less risky and, when comparing its historical volatility, Coeur Mining is 2.22 times less risky than Major Drilling. The stock trades about -0.08 of its potential returns per unit of risk. The Major Drilling Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Major Drilling Group on December 5, 2024 and sell it today you would lose (5.00) from holding Major Drilling Group or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Major Drilling Group
Performance |
| Timeline |
| Coeur Mining |
| Major Drilling Group |
Coeur Mining and Major Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Major Drilling
The main advantage of trading using opposite Coeur Mining and Major Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Major Drilling 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 Major Drilling will offset losses from the drop in Major Drilling's long position.| Coeur Mining vs. Takark Jelzlogbank Nyrt | Coeur Mining vs. PT Bank Maybank | Coeur Mining vs. BANKINTER ADR 2007 | Coeur Mining vs. COREBRIDGE FINANCIAL INC |
| Major Drilling vs. Fukuyama Transporting Co | Major Drilling vs. American Public Education | Major Drilling vs. Transportadora de Gas | Major Drilling vs. PARKEN SPORT ENT |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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