Correlation Between Kinross Gold and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Kinross Gold 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 Kinross Gold and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Coeur Mining, you can compare the effects of market volatilities on Kinross Gold 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 Kinross Gold with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Coeur Mining.
Diversification Opportunities for Kinross Gold and Coeur Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinross and Coeur is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Kinross Gold 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 Kinross Gold 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 Kinross Gold i.e., Kinross Gold and Coeur Mining go up and down completely randomly.
Pair Corralation between Kinross Gold and Coeur Mining
Considering the 90-day investment horizon Kinross Gold is expected to generate 1.04 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Kinross Gold is 1.73 times less risky than Coeur Mining. It trades about 0.09 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Coeur Mining on August 27, 2024 and sell it today you would earn a total of 332.00 from holding Coeur Mining or generate 102.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinross Gold vs. Coeur Mining
Performance |
| Timeline |
| Kinross Gold |
| Coeur Mining |
Kinross Gold and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Coeur Mining
The main advantage of trading using opposite Kinross Gold and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold 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.| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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