Correlation Between Golden Metal and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Golden Metal 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 Golden Metal and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Metal Resources and Coeur Mining, you can compare the effects of market volatilities on Golden Metal 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 Golden Metal with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Metal and Coeur Mining.
Diversification Opportunities for Golden Metal and Coeur Mining
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Coeur is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Golden Metal Resources and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Golden Metal 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 Golden Metal Resources 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 Golden Metal i.e., Golden Metal and Coeur Mining go up and down completely randomly.
Pair Corralation between Golden Metal and Coeur Mining
Assuming the 90 days trading horizon Golden Metal Resources is expected to generate 1.03 times more return on investment than Coeur Mining. However, Golden Metal is 1.03 times more volatile than Coeur Mining. It trades about 0.12 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.07 per unit of risk. If you would invest 850.00 in Golden Metal Resources on November 28, 2024 and sell it today you would earn a total of 2,500 from holding Golden Metal Resources or generate 294.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Golden Metal Resources vs. Coeur Mining
Performance |
| Timeline |
| Golden Metal Resources |
| Coeur Mining |
Golden Metal and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Metal and Coeur Mining
The main advantage of trading using opposite Golden Metal and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Metal 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.| Golden Metal vs. AcadeMedia AB | Golden Metal vs. JD Sports Fashion | Golden Metal vs. Atresmedia | Golden Metal vs. Liberty Media Corp |
| Coeur Mining vs. Home Depot | Coeur Mining vs. Weiss Korea Opportunity | Coeur Mining vs. River and Mercantile | Coeur Mining vs. Chrysalis Investments |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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