Correlation Between Capital Metals and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Capital Metals 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 Capital Metals and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Metals PLC and Coeur Mining, you can compare the effects of market volatilities on Capital Metals 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 Capital Metals with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Metals and Coeur Mining.
Diversification Opportunities for Capital Metals and Coeur Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capital and Coeur is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Capital Metals PLC and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Capital Metals 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 Capital Metals PLC 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 Capital Metals i.e., Capital Metals and Coeur Mining go up and down completely randomly.
Pair Corralation between Capital Metals and Coeur Mining
Assuming the 90 days trading horizon Capital Metals PLC is expected to generate 0.51 times more return on investment than Coeur Mining. However, Capital Metals PLC is 1.95 times less risky than Coeur Mining. It trades about -0.32 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.2 per unit of risk. If you would invest 190.00 in Capital Metals PLC on October 10, 2024 and sell it today you would lose (20.00) from holding Capital Metals PLC or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Capital Metals PLC vs. Coeur Mining
Performance |
| Timeline |
| Capital Metals PLC |
| Coeur Mining |
Capital Metals and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Metals and Coeur Mining
The main advantage of trading using opposite Capital Metals and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Metals 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.| Capital Metals vs. Givaudan SA | Capital Metals vs. Antofagasta PLC | Capital Metals vs. Ferrexpo PLC | Capital Metals vs. Atalaya Mining |
| Coeur Mining vs. Cornish Metals | Coeur Mining vs. Wheaton Precious Metals | Coeur Mining vs. Atalaya Mining | Coeur Mining vs. Thor Mining PLC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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