Correlation Between Synthomer Plc and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Synthomer Plc 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 Synthomer Plc and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synthomer plc and Coeur Mining, you can compare the effects of market volatilities on Synthomer Plc 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 Synthomer Plc with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synthomer Plc and Coeur Mining.
Diversification Opportunities for Synthomer Plc and Coeur Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Synthomer and Coeur is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Synthomer plc and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Synthomer Plc 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 Synthomer 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 Synthomer Plc i.e., Synthomer Plc and Coeur Mining go up and down completely randomly.
Pair Corralation between Synthomer Plc and Coeur Mining
Assuming the 90 days trading horizon Synthomer plc is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, Synthomer plc is 1.12 times less risky than Coeur Mining. The stock trades about -0.07 of its potential returns per unit of risk. The Coeur Mining is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 647.00 in Coeur Mining on October 30, 2024 and sell it today you would lose (41.00) from holding Coeur Mining or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
Synthomer plc vs. Coeur Mining
Performance |
| Timeline |
| Synthomer plc |
| Coeur Mining |
Synthomer Plc and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synthomer Plc and Coeur Mining
The main advantage of trading using opposite Synthomer Plc and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synthomer Plc 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.| Synthomer Plc vs. BE Semiconductor Industries | Synthomer Plc vs. Diversified Energy | Synthomer Plc vs. Herald Investment Trust | Synthomer Plc vs. National Beverage Corp |
| Coeur Mining vs. Beowulf Mining | Coeur Mining vs. PureTech Health plc | Coeur Mining vs. Blackrock World Mining | Coeur Mining vs. Anglo Asian Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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