Correlation Between Sanyo Chemical and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Sanyo Chemical 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 Sanyo Chemical and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanyo Chemical Industries and Coeur Mining, you can compare the effects of market volatilities on Sanyo Chemical 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 Sanyo Chemical with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanyo Chemical and Coeur Mining.
Diversification Opportunities for Sanyo Chemical and Coeur Mining
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanyo and Coeur is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sanyo Chemical Industries and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Sanyo Chemical 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 Sanyo Chemical Industries 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 Sanyo Chemical i.e., Sanyo Chemical and Coeur Mining go up and down completely randomly.
Pair Corralation between Sanyo Chemical and Coeur Mining
Assuming the 90 days horizon Sanyo Chemical Industries is expected to generate 0.91 times more return on investment than Coeur Mining. However, Sanyo Chemical Industries is 1.1 times less risky than Coeur Mining. It trades about -0.02 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.05 per unit of risk. If you would invest 2,680 in Sanyo Chemical Industries on August 26, 2024 and sell it today you would lose (280.00) from holding Sanyo Chemical Industries or give up 10.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanyo Chemical Industries vs. Coeur Mining
Performance |
| Timeline |
| Sanyo Chemical Industries |
| Coeur Mining |
Sanyo Chemical and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanyo Chemical and Coeur Mining
The main advantage of trading using opposite Sanyo Chemical and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanyo Chemical 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.| Sanyo Chemical vs. Air Liquide SA | Sanyo Chemical vs. PPG Industries | Sanyo Chemical vs. Albemarle | Sanyo Chemical vs. Superior Plus Corp |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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