Correlation Between Coeur Mining and ITV Plc
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and ITV Plc 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 ITV Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and ITV plc, you can compare the effects of market volatilities on Coeur Mining and ITV Plc 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 ITV Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and ITV Plc.
Diversification Opportunities for Coeur Mining and ITV Plc
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coeur and ITV is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and ITV plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV plc 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 ITV Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV plc has no effect on the direction of Coeur Mining i.e., Coeur Mining and ITV Plc go up and down completely randomly.
Pair Corralation between Coeur Mining and ITV Plc
Assuming the 90 days horizon Coeur Mining is expected to generate 0.23 times more return on investment than ITV Plc. However, Coeur Mining is 4.27 times less risky than ITV Plc. It trades about -0.11 of its potential returns per unit of risk. ITV plc is currently generating about -0.29 per unit of risk. If you would invest 364.00 in Coeur Mining on August 25, 2024 and sell it today you would lose (6.00) from holding Coeur Mining or give up 1.65% 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. ITV plc
Performance |
| Timeline |
| Coeur Mining |
| ITV plc |
Coeur Mining and ITV Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and ITV Plc
The main advantage of trading using opposite Coeur Mining and ITV Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, ITV Plc 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 ITV Plc will offset losses from the drop in ITV Plc'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 |
| ITV Plc vs. American Eagle Outfitters | ITV Plc vs. Strategic Education | ITV Plc vs. STRAYER EDUCATION | ITV Plc vs. Coeur Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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