Correlation Between Coeur Mining and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Dairy Farm 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 Dairy Farm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Dairy Farm International, you can compare the effects of market volatilities on Coeur Mining and Dairy Farm 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 Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Dairy Farm.
Diversification Opportunities for Coeur Mining and Dairy Farm
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Dairy is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International 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 Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of Coeur Mining i.e., Coeur Mining and Dairy Farm go up and down completely randomly.
Pair Corralation between Coeur Mining and Dairy Farm
Assuming the 90 days horizon Coeur Mining is expected to under-perform the Dairy Farm. But the stock apears to be less risky and, when comparing its historical volatility, Coeur Mining is 2.59 times less risky than Dairy Farm. The stock trades about -0.11 of its potential returns per unit of risk. The Dairy Farm International is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 212.00 in Dairy Farm International on August 25, 2024 and sell it today you would earn a total of 22.00 from holding Dairy Farm International or generate 10.38% 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. Dairy Farm International
Performance |
| Timeline |
| Coeur Mining |
| Dairy Farm International |
Coeur Mining and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Dairy Farm
The main advantage of trading using opposite Coeur Mining and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| Coeur Mining vs. Longfor Group Holdings | Coeur Mining vs. Sino Land | Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. NMI Holdings |
| Dairy Farm vs. PT Global Mediacom | Dairy Farm vs. Dave Busters Entertainment | Dairy Farm vs. Ameriprise Financial | Dairy Farm vs. ATRESMEDIA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |