Correlation Between Wheaton Precious and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious 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 Wheaton Precious and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheaton Precious Metals and Coeur Mining, you can compare the effects of market volatilities on Wheaton Precious 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 Wheaton Precious with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and Coeur Mining.
Diversification Opportunities for Wheaton Precious and Coeur Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wheaton and Coeur is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Wheaton Precious 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 Wheaton Precious Metals 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 Wheaton Precious i.e., Wheaton Precious and Coeur Mining go up and down completely randomly.
Pair Corralation between Wheaton Precious and Coeur Mining
Considering the 90-day investment horizon Wheaton Precious Metals is expected to generate 0.51 times more return on investment than Coeur Mining. However, Wheaton Precious Metals is 1.97 times less risky than Coeur Mining. It trades about 0.43 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.11 per unit of risk. If you would invest 5,777 in Wheaton Precious Metals on November 18, 2024 and sell it today you would earn a total of 973.00 from holding Wheaton Precious Metals or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheaton Precious Metals vs. Coeur Mining
Performance |
| Timeline |
| Wheaton Precious Metals |
| Coeur Mining |
Wheaton Precious and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and Coeur Mining
The main advantage of trading using opposite Wheaton Precious and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious 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.| Wheaton Precious vs. Royal Gold | Wheaton Precious vs. Agnico Eagle Mines | Wheaton Precious vs. Sandstorm Gold Ltd | Wheaton Precious vs. Osisko Gold Ro |
| Coeur Mining vs. Equinox Gold Corp | Coeur Mining vs. B2Gold Corp | Coeur Mining vs. Sandstorm Gold Ltd | Coeur Mining vs. Pan American Silver |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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