Correlation Between Taylor Maritime and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Taylor Maritime 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 Taylor Maritime and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taylor Maritime Investments and Coeur Mining, you can compare the effects of market volatilities on Taylor Maritime 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 Taylor Maritime with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taylor Maritime and Coeur Mining.
Diversification Opportunities for Taylor Maritime and Coeur Mining
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taylor and Coeur is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Taylor Maritime Investments and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Taylor Maritime 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 Taylor Maritime Investments 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 Taylor Maritime i.e., Taylor Maritime and Coeur Mining go up and down completely randomly.
Pair Corralation between Taylor Maritime and Coeur Mining
Assuming the 90 days trading horizon Taylor Maritime Investments is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, Taylor Maritime Investments is 2.48 times less risky than Coeur Mining. The stock trades about -0.01 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 342.00 in Coeur Mining on September 4, 2024 and sell it today you would earn a total of 276.00 from holding Coeur Mining or generate 80.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Taylor Maritime Investments vs. Coeur Mining
Performance |
| Timeline |
| Taylor Maritime Inve |
| Coeur Mining |
Taylor Maritime and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taylor Maritime and Coeur Mining
The main advantage of trading using opposite Taylor Maritime and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taylor Maritime 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.| Taylor Maritime vs. Samsung Electronics Co | Taylor Maritime vs. Samsung Electronics Co | Taylor Maritime vs. Hyundai Motor | Taylor Maritime vs. Toyota Motor Corp |
| Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Hyundai Motor | Coeur Mining vs. Toyota Motor Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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