Correlation Between Coeur Mining and Fortuna Silver
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Fortuna Silver 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 Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Fortuna Silver Mines, you can compare the effects of market volatilities on Coeur Mining and Fortuna Silver 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 Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Fortuna Silver.
Diversification Opportunities for Coeur Mining and Fortuna Silver
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coeur and Fortuna is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines 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 Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of Coeur Mining i.e., Coeur Mining and Fortuna Silver go up and down completely randomly.
Pair Corralation between Coeur Mining and Fortuna Silver
Considering the 90-day investment horizon Coeur Mining is expected to under-perform the Fortuna Silver. In addition to that, Coeur Mining is 1.6 times more volatile than Fortuna Silver Mines. It trades about -0.08 of its total potential returns per unit of risk. Fortuna Silver Mines is currently generating about -0.09 per unit of volatility. If you would invest 529.00 in Fortuna Silver Mines on August 24, 2024 and sell it today you would lose (29.00) from holding Fortuna Silver Mines or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Fortuna Silver Mines
Performance |
| Timeline |
| Coeur Mining |
| Fortuna Silver Mines |
Coeur Mining and Fortuna Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Fortuna Silver
The main advantage of trading using opposite Coeur Mining and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Fortuna Silver 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 Fortuna Silver will offset losses from the drop in Fortuna Silver's long position.| Coeur Mining vs. Gold Fields Ltd | Coeur Mining vs. Barrick Gold Corp | Coeur Mining vs. Pan American Silver | Coeur Mining vs. Franco Nevada |
| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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