Correlation Between Coeur Mining and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and REGAL ASIAN 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 REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on Coeur Mining and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and REGAL ASIAN.
Diversification Opportunities for Coeur Mining and REGAL ASIAN
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and REGAL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of Coeur Mining i.e., Coeur Mining and REGAL ASIAN go up and down completely randomly.
Pair Corralation between Coeur Mining and REGAL ASIAN
Assuming the 90 days horizon Coeur Mining is expected to generate 0.71 times more return on investment than REGAL ASIAN. However, Coeur Mining is 1.42 times less risky than REGAL ASIAN. It trades about 0.01 of its potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.04 per unit of risk. If you would invest 354.00 in Coeur Mining on September 27, 2024 and sell it today you would earn a total of 2.00 from holding Coeur Mining or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| Coeur Mining |
| REGAL ASIAN INVESTMENTS |
Coeur Mining and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and REGAL ASIAN
The main advantage of trading using opposite Coeur Mining and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| Coeur Mining vs. BURLINGTON STORES | Coeur Mining vs. MARKET VECTR RETAIL | Coeur Mining vs. SPARTAN STORES | Coeur Mining vs. Retail Estates NV |
| REGAL ASIAN vs. Coeur Mining | REGAL ASIAN vs. MCEWEN MINING INC | REGAL ASIAN vs. BOS BETTER ONLINE | REGAL ASIAN vs. Harmony Gold Mining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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