Correlation Between Coeur Mining and Alkane Resources
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Alkane Resources 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 Alkane Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Alkane Resources Limited, you can compare the effects of market volatilities on Coeur Mining and Alkane Resources 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 Alkane Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Alkane Resources.
Diversification Opportunities for Coeur Mining and Alkane Resources
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and Alkane is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Alkane Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkane Resources 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 Alkane Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkane Resources has no effect on the direction of Coeur Mining i.e., Coeur Mining and Alkane Resources go up and down completely randomly.
Pair Corralation between Coeur Mining and Alkane Resources
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.29 times less return on investment than Alkane Resources. But when comparing it to its historical volatility, Coeur Mining is 1.62 times less risky than Alkane Resources. It trades about 0.22 of its potential returns per unit of risk. Alkane Resources Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Alkane Resources Limited on November 8, 2024 and sell it today you would earn a total of 6.00 from holding Alkane Resources Limited or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Alkane Resources Limited
Performance |
| Timeline |
| Coeur Mining |
| Alkane Resources |
Coeur Mining and Alkane Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Alkane Resources
The main advantage of trading using opposite Coeur Mining and Alkane Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Alkane Resources 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 Alkane Resources will offset losses from the drop in Alkane Resources' long position.| Coeur Mining vs. Equinox Gold Corp | Coeur Mining vs. B2Gold Corp | Coeur Mining vs. Sandstorm Gold Ltd | Coeur Mining vs. Pan American Silver |
| Alkane Resources vs. Arafura Resources | Alkane Resources vs. Great Western Minerals | Alkane Resources vs. Greenland Minerals And | Alkane Resources vs. Ucore Rare Metals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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