Correlation Between Europa Metals and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Europa 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 Europa 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 Europa Metals and Coeur Mining, you can compare the effects of market volatilities on Europa 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 Europa Metals with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europa Metals and Coeur Mining.
Diversification Opportunities for Europa Metals and Coeur Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Europa and Coeur is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Europa Metals and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Europa 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 Europa Metals 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 Europa Metals i.e., Europa Metals and Coeur Mining go up and down completely randomly.
Pair Corralation between Europa Metals and Coeur Mining
Assuming the 90 days trading horizon Europa Metals is expected to generate 0.79 times more return on investment than Coeur Mining. However, Europa Metals is 1.27 times less risky than Coeur Mining. It trades about 0.11 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.03 per unit of risk. If you would invest 135.00 in Europa Metals on October 25, 2024 and sell it today you would earn a total of 65.00 from holding Europa Metals or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Europa Metals vs. Coeur Mining
Performance |
| Timeline |
| Europa Metals |
| Coeur Mining |
Europa Metals and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europa Metals and Coeur Mining
The main advantage of trading using opposite Europa Metals and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europa 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.| Europa Metals vs. Givaudan SA | Europa Metals vs. Antofagasta PLC | Europa Metals vs. Ferrexpo PLC | Europa Metals vs. Atalaya Mining |
| Coeur Mining vs. Prosiebensat 1 Media | Coeur Mining vs. Live Nation Entertainment | Coeur Mining vs. Tavistock Investments Plc | Coeur Mining vs. Smithson Investment Trust |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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