Correlation Between Coeur Mining and Coty
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Coty 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 Coty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Coty Inc, you can compare the effects of market volatilities on Coeur Mining and Coty 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 Coty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Coty.
Diversification Opportunities for Coeur Mining and Coty
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and Coty is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Coty Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coty Inc 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 Coty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coty Inc has no effect on the direction of Coeur Mining i.e., Coeur Mining and Coty go up and down completely randomly.
Pair Corralation between Coeur Mining and Coty
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.8 times more return on investment than Coty. However, Coeur Mining is 1.8 times more volatile than Coty Inc. It trades about 0.1 of its potential returns per unit of risk. Coty Inc is currently generating about 0.18 per unit of risk. If you would invest 620.00 in Coeur Mining on November 3, 2024 and sell it today you would earn a total of 40.00 from holding Coeur Mining or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Coeur Mining vs. Coty Inc
Performance |
| Timeline |
| Coeur Mining |
| Coty Inc |
Coeur Mining and Coty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Coty
The main advantage of trading using opposite Coeur Mining and Coty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Coty 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 Coty will offset losses from the drop in Coty'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 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |