Correlation Between Costco Wholesale and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Costco Wholesale 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 Costco Wholesale and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costco Wholesale Corp and Coeur Mining, you can compare the effects of market volatilities on Costco Wholesale 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 Costco Wholesale with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costco Wholesale and Coeur Mining.
Diversification Opportunities for Costco Wholesale and Coeur Mining
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Costco and Coeur is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale Corp and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Costco Wholesale 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 Costco Wholesale Corp 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 Costco Wholesale i.e., Costco Wholesale and Coeur Mining go up and down completely randomly.
Pair Corralation between Costco Wholesale and Coeur Mining
Assuming the 90 days trading horizon Costco Wholesale Corp is expected to generate 1.13 times more return on investment than Coeur Mining. However, Costco Wholesale is 1.13 times more volatile than Coeur Mining. It trades about 0.29 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.08 per unit of risk. If you would invest 87,760 in Costco Wholesale Corp on September 12, 2024 and sell it today you would earn a total of 6,710 from holding Costco Wholesale Corp or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Costco Wholesale Corp vs. Coeur Mining
Performance |
| Timeline |
| Costco Wholesale Corp |
| Coeur Mining |
Costco Wholesale and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costco Wholesale and Coeur Mining
The main advantage of trading using opposite Costco Wholesale and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale 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.| Costco Wholesale vs. PennyMac Mortgage Investment | Costco Wholesale vs. Singapore Airlines Limited | Costco Wholesale vs. Aegean Airlines SA | Costco Wholesale vs. Southwest Airlines Co |
| Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. SIVERS SEMICONDUCTORS AB | Coeur Mining vs. Reliance Steel Aluminum | Coeur Mining vs. CHINA HUARONG ENERHD 50 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |