Correlation Between Coeur Mining and AngloGold Ashanti
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and AngloGold Ashanti 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 AngloGold Ashanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and AngloGold Ashanti plc, you can compare the effects of market volatilities on Coeur Mining and AngloGold Ashanti 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 AngloGold Ashanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and AngloGold Ashanti.
Diversification Opportunities for Coeur Mining and AngloGold Ashanti
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and AngloGold is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and AngloGold Ashanti plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngloGold Ashanti 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 AngloGold Ashanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngloGold Ashanti plc has no effect on the direction of Coeur Mining i.e., Coeur Mining and AngloGold Ashanti go up and down completely randomly.
Pair Corralation between Coeur Mining and AngloGold Ashanti
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.74 times more return on investment than AngloGold Ashanti. However, Coeur Mining is 1.74 times more volatile than AngloGold Ashanti plc. It trades about 0.08 of its potential returns per unit of risk. AngloGold Ashanti plc is currently generating about -0.08 per unit of risk. If you would invest 546.00 in Coeur Mining on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Coeur Mining or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. AngloGold Ashanti plc
Performance |
| Timeline |
| Coeur Mining |
| AngloGold Ashanti plc |
Coeur Mining and AngloGold Ashanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and AngloGold Ashanti
The main advantage of trading using opposite Coeur Mining and AngloGold Ashanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, AngloGold Ashanti 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 AngloGold Ashanti will offset losses from the drop in AngloGold Ashanti's 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 |
| AngloGold Ashanti vs. Harmony Gold Mining | AngloGold Ashanti vs. Eldorado Gold Corp | AngloGold Ashanti vs. Kinross Gold | AngloGold Ashanti vs. Pan American Silver |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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