Correlation Between Coeur Mining and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Graham Holdings 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 Graham Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Graham Holdings Co, you can compare the effects of market volatilities on Coeur Mining and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Graham Holdings.
Diversification Opportunities for Coeur Mining and Graham Holdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Graham is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of Coeur Mining i.e., Coeur Mining and Graham Holdings go up and down completely randomly.
Pair Corralation between Coeur Mining and Graham Holdings
Assuming the 90 days horizon Coeur Mining is expected to under-perform the Graham Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Coeur Mining is 4.61 times less risky than Graham Holdings. The stock trades about -0.11 of its potential returns per unit of risk. The Graham Holdings Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 71,500 in Graham Holdings Co on August 25, 2024 and sell it today you would earn a total of 15,500 from holding Graham Holdings Co or generate 21.68% 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. Graham Holdings Co
Performance |
| Timeline |
| Coeur Mining |
| Graham Holdings |
Coeur Mining and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Graham Holdings
The main advantage of trading using opposite Coeur Mining and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.| Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. NMI Holdings | Coeur Mining vs. Origin Agritech | Coeur Mining vs. SIVERS SEMICONDUCTORS AB |
| Graham Holdings vs. Coeur Mining | Graham Holdings vs. BJs Wholesale Club | Graham Holdings vs. WILLIS LEASE FIN | Graham Holdings vs. COSTCO WHOLESALE CDR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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