Correlation Between Tetragon Financial and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Tetragon Financial 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 Tetragon Financial and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tetragon Financial Group and Coeur Mining, you can compare the effects of market volatilities on Tetragon Financial 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 Tetragon Financial with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tetragon Financial and Coeur Mining.
Diversification Opportunities for Tetragon Financial and Coeur Mining
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tetragon and Coeur is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Tetragon Financial Group and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Tetragon Financial 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 Tetragon Financial Group 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 Tetragon Financial i.e., Tetragon Financial and Coeur Mining go up and down completely randomly.
Pair Corralation between Tetragon Financial and Coeur Mining
Assuming the 90 days trading horizon Tetragon Financial Group is expected to generate 0.62 times more return on investment than Coeur Mining. However, Tetragon Financial Group is 1.62 times less risky than Coeur Mining. It trades about 0.4 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.12 per unit of risk. If you would invest 1,410 in Tetragon Financial Group on October 25, 2024 and sell it today you would earn a total of 220.00 from holding Tetragon Financial Group or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Tetragon Financial Group vs. Coeur Mining
Performance |
| Timeline |
| Tetragon Financial |
| Coeur Mining |
Tetragon Financial and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tetragon Financial and Coeur Mining
The main advantage of trading using opposite Tetragon Financial and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tetragon Financial 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.| Tetragon Financial vs. Griffin Mining | Tetragon Financial vs. Pan American Silver | Tetragon Financial vs. Summit Materials Cl | Tetragon Financial vs. Atalaya Mining |
| Coeur Mining vs. Prosiebensat 1 Media | Coeur Mining vs. Live Nation Entertainment | Coeur Mining vs. Tavistock Investments Plc | Coeur Mining vs. Smithson Investment Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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