Correlation Between Coeur Mining and BROADWIND ENRGY
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and BROADWIND ENRGY 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 BROADWIND ENRGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and BROADWIND ENRGY, you can compare the effects of market volatilities on Coeur Mining and BROADWIND ENRGY 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 BROADWIND ENRGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and BROADWIND ENRGY.
Diversification Opportunities for Coeur Mining and BROADWIND ENRGY
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coeur and BROADWIND is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and BROADWIND ENRGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROADWIND ENRGY 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 BROADWIND ENRGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROADWIND ENRGY has no effect on the direction of Coeur Mining i.e., Coeur Mining and BROADWIND ENRGY go up and down completely randomly.
Pair Corralation between Coeur Mining and BROADWIND ENRGY
Assuming the 90 days horizon Coeur Mining is expected to under-perform the BROADWIND ENRGY. But the stock apears to be less risky and, when comparing its historical volatility, Coeur Mining is 3.37 times less risky than BROADWIND ENRGY. The stock trades about -0.04 of its potential returns per unit of risk. The BROADWIND ENRGY is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 302.00 in BROADWIND ENRGY on October 29, 2024 and sell it today you would lose (125.00) from holding BROADWIND ENRGY or give up 41.39% 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. BROADWIND ENRGY
Performance |
| Timeline |
| Coeur Mining |
| BROADWIND ENRGY |
Coeur Mining and BROADWIND ENRGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and BROADWIND ENRGY
The main advantage of trading using opposite Coeur Mining and BROADWIND ENRGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, BROADWIND ENRGY 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 BROADWIND ENRGY will offset losses from the drop in BROADWIND ENRGY's long position.| Coeur Mining vs. LANDSEA GREEN MANAGEMENT | Coeur Mining vs. CEOTRONICS | Coeur Mining vs. Cleanaway Waste Management | Coeur Mining vs. CeoTronics AG |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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