Correlation Between Internet Thailand and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Internet Thailand 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 Internet Thailand and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Thailand PCL and Coeur Mining, you can compare the effects of market volatilities on Internet Thailand 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 Internet Thailand with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Coeur Mining.
Diversification Opportunities for Internet Thailand and Coeur Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Internet and Coeur is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand PCL and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Internet Thailand 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 Internet Thailand PCL 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 Internet Thailand i.e., Internet Thailand and Coeur Mining go up and down completely randomly.
Pair Corralation between Internet Thailand and Coeur Mining
Assuming the 90 days trading horizon Internet Thailand PCL is expected to generate 32.75 times more return on investment than Coeur Mining. However, Internet Thailand is 32.75 times more volatile than Coeur Mining. It trades about 0.04 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.05 per unit of risk. If you would invest 14.00 in Internet Thailand PCL on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Internet Thailand PCL or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand PCL vs. Coeur Mining
Performance |
| Timeline |
| Internet Thailand PCL |
| Coeur Mining |
Internet Thailand and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Coeur Mining
The main advantage of trading using opposite Internet Thailand and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand 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.| Internet Thailand vs. Marie Brizard Wine | Internet Thailand vs. Harmony Gold Mining | Internet Thailand vs. CapitaLand Investment Limited | Internet Thailand vs. MGIC INVESTMENT |
| Coeur Mining vs. TITANIUM TRANSPORTGROUP | Coeur Mining vs. NTG Nordic Transport | Coeur Mining vs. LGI Homes | Coeur Mining vs. Haier Smart Home |
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..
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