Correlation Between Coeur Mining and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and MagnaChip Semiconductor 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 MagnaChip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and MagnaChip Semiconductor Corp, you can compare the effects of market volatilities on Coeur Mining and MagnaChip Semiconductor 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 MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and MagnaChip Semiconductor.
Diversification Opportunities for Coeur Mining and MagnaChip Semiconductor
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and MagnaChip is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and MagnaChip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor 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 MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of Coeur Mining i.e., Coeur Mining and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between Coeur Mining and MagnaChip Semiconductor
Assuming the 90 days horizon Coeur Mining is expected to generate 0.42 times more return on investment than MagnaChip Semiconductor. However, Coeur Mining is 2.37 times less risky than MagnaChip Semiconductor. It trades about 0.01 of its potential returns per unit of risk. MagnaChip Semiconductor Corp is currently generating about -0.06 per unit of risk. If you would invest 358.00 in Coeur Mining on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Coeur Mining or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Coeur Mining vs. MagnaChip Semiconductor Corp
Performance |
| Timeline |
| Coeur Mining |
| MagnaChip Semiconductor |
Coeur Mining and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and MagnaChip Semiconductor
The main advantage of trading using opposite Coeur Mining and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.| Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. NMI Holdings | Coeur Mining vs. Origin Agritech | Coeur Mining vs. SIVERS SEMICONDUCTORS AB |
| MagnaChip Semiconductor vs. Apple Inc | MagnaChip Semiconductor vs. Apple Inc | MagnaChip Semiconductor vs. Apple Inc | MagnaChip Semiconductor vs. Apple Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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