Correlation Between Canadian General and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Canadian General and Coeur Mining 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 Canadian General and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian General Investments and Coeur Mining, you can compare the effects of market volatilities on Canadian General and Coeur Mining 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 Canadian General with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Coeur Mining.
Diversification Opportunities for Canadian General and Coeur Mining
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canadian and Coeur is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Canadian General 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 Canadian General Investments are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Canadian General i.e., Canadian General and Coeur Mining go up and down completely randomly.
Pair Corralation between Canadian General and Coeur Mining
Assuming the 90 days trading horizon Canadian General is expected to generate 7.3 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Canadian General Investments is 2.53 times less risky than Coeur Mining. It trades about 0.04 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 281.00 in Coeur Mining on November 8, 2024 and sell it today you would earn a total of 416.00 from holding Coeur Mining or generate 148.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
Canadian General Investments vs. Coeur Mining
Performance |
| Timeline |
| Canadian General Inv |
| Coeur Mining |
Canadian General and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian General and Coeur Mining
The main advantage of trading using opposite Canadian General and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian General position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Canadian General vs. Invesco Physical Silver | Canadian General vs. Griffin Mining | Canadian General vs. Silvercorp Metals | Canadian General vs. Flow Traders NV |
| Coeur Mining vs. GreenX Metals | Coeur Mining vs. European Metals Holdings | Coeur Mining vs. GoldMining | Coeur Mining vs. Wizz Air Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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