Correlation Between CAP LEASE and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both CAP LEASE 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 CAP LEASE and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAP LEASE AVIATION and Coeur Mining, you can compare the effects of market volatilities on CAP LEASE 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 CAP LEASE with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Coeur Mining.
Diversification Opportunities for CAP LEASE and Coeur Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CAP and Coeur is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CAP LEASE AVIATION and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and CAP LEASE 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 CAP LEASE AVIATION 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 CAP LEASE i.e., CAP LEASE and Coeur Mining go up and down completely randomly.
Pair Corralation between CAP LEASE and Coeur Mining
Assuming the 90 days trading horizon CAP LEASE AVIATION is expected to generate 0.29 times more return on investment than Coeur Mining. However, CAP LEASE AVIATION is 3.46 times less risky than Coeur Mining. It trades about 0.23 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.08 per unit of risk. If you would invest 48.00 in CAP LEASE AVIATION on October 13, 2024 and sell it today you would earn a total of 2.00 from holding CAP LEASE AVIATION or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
CAP LEASE AVIATION vs. Coeur Mining
Performance |
| Timeline |
| CAP LEASE AVIATION |
| Coeur Mining |
CAP LEASE and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAP LEASE and Coeur Mining
The main advantage of trading using opposite CAP LEASE and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAP LEASE 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.| CAP LEASE vs. PureTech Health plc | CAP LEASE vs. Charter Communications Cl | CAP LEASE vs. Polar Capital Technology | CAP LEASE vs. Aptitude Software Group |
| Coeur Mining vs. Bloomsbury Publishing Plc | Coeur Mining vs. Fulcrum Metals PLC | Coeur Mining vs. CAP LEASE AVIATION | Coeur Mining vs. AMG Advanced Metallurgical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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