Correlation Between Impax Environmental and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Impax Environmental 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 Impax Environmental and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Environmental Markets and Coeur Mining, you can compare the effects of market volatilities on Impax Environmental 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 Impax Environmental with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Environmental and Coeur Mining.
Diversification Opportunities for Impax Environmental and Coeur Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Impax and Coeur is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Impax Environmental Markets and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Impax Environmental 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 Impax Environmental Markets 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 Impax Environmental i.e., Impax Environmental and Coeur Mining go up and down completely randomly.
Pair Corralation between Impax Environmental and Coeur Mining
Assuming the 90 days trading horizon Impax Environmental Markets is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, Impax Environmental Markets is 3.9 times less risky than Coeur Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Coeur Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 326.00 in Coeur Mining on September 5, 2024 and sell it today you would earn a total of 332.00 from holding Coeur Mining or generate 101.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Impax Environmental Markets vs. Coeur Mining
Performance |
| Timeline |
| Impax Environmental |
| Coeur Mining |
Impax Environmental and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Environmental and Coeur Mining
The main advantage of trading using opposite Impax Environmental and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Environmental 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.| Impax Environmental vs. Cairo Communication SpA | Impax Environmental vs. New Residential Investment | Impax Environmental vs. Herald Investment Trust | Impax Environmental vs. Lowland Investment Co |
| Coeur Mining vs. Planet Fitness Cl | Coeur Mining vs. HCA Healthcare | Coeur Mining vs. Impax Environmental Markets | Coeur Mining vs. Spire Healthcare Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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