Correlation Between Coeur Mining and DATANG INTL
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and DATANG INTL 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 DATANG INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and DATANG INTL POW, you can compare the effects of market volatilities on Coeur Mining and DATANG INTL 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 DATANG INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and DATANG INTL.
Diversification Opportunities for Coeur Mining and DATANG INTL
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and DATANG is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and DATANG INTL POW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATANG INTL POW 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 DATANG INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATANG INTL POW has no effect on the direction of Coeur Mining i.e., Coeur Mining and DATANG INTL go up and down completely randomly.
Pair Corralation between Coeur Mining and DATANG INTL
Assuming the 90 days horizon Coeur Mining is expected to under-perform the DATANG INTL. But the stock apears to be less risky and, when comparing its historical volatility, Coeur Mining is 4.5 times less risky than DATANG INTL. The stock trades about -0.07 of its potential returns per unit of risk. The DATANG INTL POW is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16.00 in DATANG INTL POW on November 1, 2024 and sell it today you would earn a total of 0.00 from holding DATANG INTL POW or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. DATANG INTL POW
Performance |
| Timeline |
| Coeur Mining |
| DATANG INTL POW |
Coeur Mining and DATANG INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and DATANG INTL
The main advantage of trading using opposite Coeur Mining and DATANG INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, DATANG INTL 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 DATANG INTL will offset losses from the drop in DATANG INTL's long position.| Coeur Mining vs. China Overseas Land | Coeur Mining vs. Mitsui Fudosan Co | Coeur Mining vs. Hongkong Land Holdings |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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