Correlation Between Coeur Mining and Rupert Resources
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Rupert 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 Rupert 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 Rupert Resources, you can compare the effects of market volatilities on Coeur Mining and Rupert 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 Rupert Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Rupert Resources.
Diversification Opportunities for Coeur Mining and Rupert Resources
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Rupert is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Rupert Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rupert 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 Rupert Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rupert Resources has no effect on the direction of Coeur Mining i.e., Coeur Mining and Rupert Resources go up and down completely randomly.
Pair Corralation between Coeur Mining and Rupert Resources
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.94 times more return on investment than Rupert Resources. However, Coeur Mining is 1.94 times more volatile than Rupert Resources. It trades about 0.08 of its potential returns per unit of risk. Rupert Resources is currently generating about -0.02 per unit of risk. If you would invest 546.00 in Coeur Mining on September 3, 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. Rupert Resources
Performance |
| Timeline |
| Coeur Mining |
| Rupert Resources |
Coeur Mining and Rupert Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Rupert Resources
The main advantage of trading using opposite Coeur Mining and Rupert Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Rupert 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 Rupert Resources will offset losses from the drop in Rupert 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 |
| Rupert Resources vs. Harmony Gold Mining | Rupert Resources vs. SPACE | Rupert Resources vs. T Rowe Price | Rupert Resources vs. Ampleforth |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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