Correlation Between London Security and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both London Security 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 London Security and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between London Security Plc and Coeur Mining, you can compare the effects of market volatilities on London Security 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 London Security with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of London Security and Coeur Mining.
Diversification Opportunities for London Security and Coeur Mining
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between London and Coeur is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding London Security Plc and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and London Security 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 London Security Plc 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 London Security i.e., London Security and Coeur Mining go up and down completely randomly.
Pair Corralation between London Security and Coeur Mining
Assuming the 90 days trading horizon London Security Plc is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, London Security Plc is 1.77 times less risky than Coeur Mining. The stock trades about -0.21 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 645.00 in Coeur Mining on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Coeur Mining or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
London Security Plc vs. Coeur Mining
Performance |
| Timeline |
| London Security Plc |
| Coeur Mining |
London Security and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with London Security and Coeur Mining
The main advantage of trading using opposite London Security and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if London Security 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.| London Security vs. Samsung Electronics Co | London Security vs. Samsung Electronics Co | London Security vs. Hyundai Motor | London Security vs. Toyota Motor Corp |
| Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group PLC |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |