Correlation Between Monks Investment and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Monks Investment 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 Monks Investment and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monks Investment Trust and Coeur Mining, you can compare the effects of market volatilities on Monks Investment 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 Monks Investment with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Coeur Mining.
Diversification Opportunities for Monks Investment and Coeur Mining
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Monks and Coeur is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Monks Investment 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 Monks Investment Trust 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 Monks Investment i.e., Monks Investment and Coeur Mining go up and down completely randomly.
Pair Corralation between Monks Investment and Coeur Mining
Assuming the 90 days trading horizon Monks Investment is expected to generate 3.94 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Monks Investment Trust is 3.99 times less risky than Coeur Mining. It trades about 0.06 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Coeur Mining on November 2, 2024 and sell it today you would earn a total of 354.00 from holding Coeur Mining or generate 105.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.01% |
| Values | Daily Returns |
Monks Investment Trust vs. Coeur Mining
Performance |
| Timeline |
| Monks Investment Trust |
| Coeur Mining |
Monks Investment and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and Coeur Mining
The main advantage of trading using opposite Monks Investment and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment 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.| Monks Investment vs. Liberty Media Corp | Monks Investment vs. Melia Hotels | Monks Investment vs. National Beverage Corp | Monks Investment vs. Dalata Hotel Group |
| Coeur Mining vs. Applied Materials | Coeur Mining vs. Indutrade AB | Coeur Mining vs. Auto Trader Group | Coeur Mining vs. Morgan Advanced Materials |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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