Correlation Between Fair Oaks and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Fair Oaks 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 Fair Oaks and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Oaks Income and Coeur Mining, you can compare the effects of market volatilities on Fair Oaks 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 Fair Oaks with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Oaks and Coeur Mining.
Diversification Opportunities for Fair Oaks and Coeur Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fair and Coeur is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fair Oaks Income and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Fair Oaks 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 Fair Oaks Income 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 Fair Oaks i.e., Fair Oaks and Coeur Mining go up and down completely randomly.
Pair Corralation between Fair Oaks and Coeur Mining
Assuming the 90 days trading horizon Fair Oaks is expected to generate 8.53 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Fair Oaks Income is 3.51 times less risky than Coeur Mining. It trades about 0.04 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 268.00 in Coeur Mining on November 3, 2024 and sell it today you would earn a total of 401.00 from holding Coeur Mining or generate 149.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Fair Oaks Income vs. Coeur Mining
Performance |
| Timeline |
| Fair Oaks Income |
| Coeur Mining |
Fair Oaks and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Oaks and Coeur Mining
The main advantage of trading using opposite Fair Oaks and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Oaks 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.| Fair Oaks vs. Dalata Hotel Group | Fair Oaks vs. Premier Foods PLC | Fair Oaks vs. Evolution Gaming Group | Fair Oaks vs. MoneysupermarketCom Group PLC |
| Coeur Mining vs. Seraphim Space Investment | Coeur Mining vs. Synchrony Financial | Coeur Mining vs. Discover Financial Services | Coeur Mining vs. Kinnevik Investment AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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