Correlation Between Graham Holdings and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Coeur Mining, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Coeur Mining.
Diversification Opportunities for Graham Holdings and Coeur Mining
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graham and Coeur is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Graham Holdings 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 Graham Holdings Co 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 Graham Holdings i.e., Graham Holdings and Coeur Mining go up and down completely randomly.
Pair Corralation between Graham Holdings and Coeur Mining
Assuming the 90 days trading horizon Graham Holdings Co is expected to generate 1.73 times more return on investment than Coeur Mining. However, Graham Holdings is 1.73 times more volatile than Coeur Mining. It trades about 0.1 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.05 per unit of risk. If you would invest 68,167 in Graham Holdings Co on August 25, 2024 and sell it today you would earn a total of 18,833 from holding Graham Holdings Co or generate 27.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Coeur Mining
Performance |
| Timeline |
| Graham Holdings |
| Coeur Mining |
Graham Holdings and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Coeur Mining
The main advantage of trading using opposite Graham Holdings and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Coeur Mining | Graham Holdings vs. BJs Wholesale Club | Graham Holdings vs. WILLIS LEASE FIN | Graham Holdings vs. COSTCO WHOLESALE CDR |
| Coeur Mining vs. Longfor Group Holdings | Coeur Mining vs. Sino Land | Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. NMI Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |