Correlation Between Coeur Mining and Bayerische Motoren
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Bayerische Motoren 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 Bayerische Motoren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Bayerische Motoren Werke, you can compare the effects of market volatilities on Coeur Mining and Bayerische Motoren 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 Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Bayerische Motoren.
Diversification Opportunities for Coeur Mining and Bayerische Motoren
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coeur and Bayerische is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke 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 Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of Coeur Mining i.e., Coeur Mining and Bayerische Motoren go up and down completely randomly.
Pair Corralation between Coeur Mining and Bayerische Motoren
Assuming the 90 days horizon Coeur Mining is expected to generate 0.9 times more return on investment than Bayerische Motoren. However, Coeur Mining is 1.11 times less risky than Bayerische Motoren. It trades about -0.03 of its potential returns per unit of risk. Bayerische Motoren Werke is currently generating about -0.06 per unit of risk. If you would invest 413.00 in Coeur Mining on September 2, 2024 and sell it today you would lose (51.00) from holding Coeur Mining or give up 12.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Bayerische Motoren Werke
Performance |
| Timeline |
| Coeur Mining |
| Bayerische Motoren Werke |
Coeur Mining and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Bayerische Motoren
The main advantage of trading using opposite Coeur Mining and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| Coeur Mining vs. Longfor Group Holdings | Coeur Mining vs. Mitsubishi Estate Co | Coeur Mining vs. Sino Land |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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