Correlation Between Caledonia Mining and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining 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 Caledonia Mining and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Coeur Mining, you can compare the effects of market volatilities on Caledonia Mining 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 Caledonia Mining with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Coeur Mining.
Diversification Opportunities for Caledonia Mining and Coeur Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Caledonia and Coeur is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Caledonia 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 Caledonia Mining 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 Caledonia Mining i.e., Caledonia Mining and Coeur Mining go up and down completely randomly.
Pair Corralation between Caledonia Mining and Coeur Mining
Assuming the 90 days trading horizon Caledonia Mining is expected to generate 32.64 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Caledonia Mining is 2.17 times less risky than Coeur Mining. It trades about 0.0 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Coeur Mining on September 12, 2024 and sell it today you would earn a total of 392.00 from holding Coeur Mining or generate 122.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.89% |
| Values | Daily Returns |
Caledonia Mining vs. Coeur Mining
Performance |
| Timeline |
| Caledonia Mining |
| Coeur Mining |
Caledonia Mining and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caledonia Mining and Coeur Mining
The main advantage of trading using opposite Caledonia Mining and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining 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.| Caledonia Mining vs. Smithson Investment Trust | Caledonia Mining vs. Lowland Investment Co | Caledonia Mining vs. Monster Beverage Corp | Caledonia Mining vs. Oakley Capital Investments |
| Coeur Mining vs. iShares Physical Silver | Coeur Mining vs. Gamma Communications PLC | Coeur Mining vs. Thor Mining PLC | Coeur Mining vs. Caledonia Mining |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |