Correlation Between Coeur Mining and Iridium Communications
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Iridium Communications 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 Iridium Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Iridium Communications, you can compare the effects of market volatilities on Coeur Mining and Iridium Communications 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 Iridium Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Iridium Communications.
Diversification Opportunities for Coeur Mining and Iridium Communications
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and Iridium is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Iridium Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iridium Communications 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 Iridium Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iridium Communications has no effect on the direction of Coeur Mining i.e., Coeur Mining and Iridium Communications go up and down completely randomly.
Pair Corralation between Coeur Mining and Iridium Communications
Assuming the 90 days horizon Coeur Mining is expected to generate 0.55 times more return on investment than Iridium Communications. However, Coeur Mining is 1.82 times less risky than Iridium Communications. It trades about -0.05 of its potential returns per unit of risk. Iridium Communications is currently generating about -0.03 per unit of risk. If you would invest 541.00 in Coeur Mining on September 3, 2024 and sell it today you would lose (179.00) from holding Coeur Mining or give up 33.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Iridium Communications
Performance |
| Timeline |
| Coeur Mining |
| Iridium Communications |
Coeur Mining and Iridium Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Iridium Communications
The main advantage of trading using opposite Coeur Mining and Iridium Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Iridium Communications 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 Iridium Communications will offset losses from the drop in Iridium Communications' long position.| Coeur Mining vs. TITANIUM TRANSPORTGROUP | Coeur Mining vs. NTG Nordic Transport | Coeur Mining vs. LGI Homes | Coeur Mining vs. Haier Smart Home |
| Iridium Communications vs. Cardinal Health | Iridium Communications vs. EPSILON HEALTHCARE LTD | Iridium Communications vs. Computer And Technologies | Iridium Communications vs. Spirent Communications 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |