Correlation Between Eco Oil and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Eco Oil 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 Eco Oil and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eco Oil Gas and Coeur Mining, you can compare the effects of market volatilities on Eco Oil 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 Eco Oil with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eco Oil and Coeur Mining.
Diversification Opportunities for Eco Oil and Coeur Mining
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eco and Coeur is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eco Oil Gas and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Eco Oil 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 Eco Oil Gas 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 Eco Oil i.e., Eco Oil and Coeur Mining go up and down completely randomly.
Pair Corralation between Eco Oil and Coeur Mining
Assuming the 90 days trading horizon Eco Oil Gas is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, Eco Oil Gas is 1.3 times less risky than Coeur Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Coeur Mining is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Coeur Mining on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Coeur Mining or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eco Oil Gas vs. Coeur Mining
Performance |
| Timeline |
| Eco Oil Gas |
| Coeur Mining |
Eco Oil and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eco Oil and Coeur Mining
The main advantage of trading using opposite Eco Oil and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eco Oil 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.| Eco Oil vs. LPKF Laser Electronics | Eco Oil vs. Wyndham Hotels Resorts | Eco Oil vs. Ecofin Global Utilities | Eco Oil vs. Zoom Video Communications |
| Coeur Mining vs. Silvercorp Metals | Coeur Mining vs. Liberty Media Corp | Coeur Mining vs. Centaur Media | Coeur Mining vs. Empire Metals Limited |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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