Correlation Between Coeur Mining and Hongkong
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Hongkong 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 Hongkong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and The Hongkong and, you can compare the effects of market volatilities on Coeur Mining and Hongkong 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 Hongkong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Hongkong.
Diversification Opportunities for Coeur Mining and Hongkong
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coeur and Hongkong is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and The Hongkong and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hongkong 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 Hongkong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hongkong has no effect on the direction of Coeur Mining i.e., Coeur Mining and Hongkong go up and down completely randomly.
Pair Corralation between Coeur Mining and Hongkong
Assuming the 90 days horizon Coeur Mining is expected to generate 0.61 times more return on investment than Hongkong. However, Coeur Mining is 1.65 times less risky than Hongkong. It trades about -0.04 of its potential returns per unit of risk. The Hongkong and is currently generating about -0.2 per unit of risk. If you would invest 356.00 in Coeur Mining on October 29, 2024 and sell it today you would lose (2.00) from holding Coeur Mining or give up 0.56% 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. The Hongkong and
Performance |
| Timeline |
| Coeur Mining |
| The Hongkong |
Coeur Mining and Hongkong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Hongkong
The main advantage of trading using opposite Coeur Mining and Hongkong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Hongkong 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 Hongkong will offset losses from the drop in Hongkong's long position.| Coeur Mining vs. LANDSEA GREEN MANAGEMENT | Coeur Mining vs. CEOTRONICS | Coeur Mining vs. Cleanaway Waste Management | Coeur Mining vs. CeoTronics AG |
| Hongkong vs. DICKS Sporting Goods | Hongkong vs. COLUMBIA SPORTSWEAR | Hongkong vs. G III Apparel Group | Hongkong vs. MAG SILVER |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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