Correlation Between Coeur Mining and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and TIMES CHINA 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 TIMES CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and TIMES CHINA HLDGS, you can compare the effects of market volatilities on Coeur Mining and TIMES CHINA 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 TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and TIMES CHINA.
Diversification Opportunities for Coeur Mining and TIMES CHINA
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and TIMES is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS 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 TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of Coeur Mining i.e., Coeur Mining and TIMES CHINA go up and down completely randomly.
Pair Corralation between Coeur Mining and TIMES CHINA
Assuming the 90 days horizon Coeur Mining is expected to generate 0.14 times more return on investment than TIMES CHINA. However, Coeur Mining is 7.11 times less risky than TIMES CHINA. It trades about 0.06 of its potential returns per unit of risk. TIMES CHINA HLDGS is currently generating about -0.18 per unit of risk. If you would invest 356.00 in Coeur Mining on October 22, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| Coeur Mining |
| TIMES CHINA HLDGS |
Coeur Mining and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and TIMES CHINA
The main advantage of trading using opposite Coeur Mining and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.| Coeur Mining vs. MOLSON RS BEVERAGE | Coeur Mining vs. China Resources Beer | Coeur Mining vs. CHRYSALIS INVESTMENTS LTD | Coeur Mining vs. MidCap Financial Investment |
| TIMES CHINA vs. United Natural Foods | TIMES CHINA vs. United Breweries Co | TIMES CHINA vs. MOLSON RS BEVERAGE | TIMES CHINA vs. MTY Food Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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