Correlation Between Coeur Mining and Metals Exploration
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Metals Exploration 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 Coeur Mining and Metals Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Metals Exploration Plc, you can compare the effects of market volatilities on Coeur Mining and Metals Exploration 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 Coeur Mining with a short position of Metals Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Metals Exploration.
Diversification Opportunities for Coeur Mining and Metals Exploration
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coeur and Metals is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Metals Exploration Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metals Exploration Plc and Coeur Mining 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 Coeur Mining are associated (or correlated) with Metals Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metals Exploration Plc has no effect on the direction of Coeur Mining i.e., Coeur Mining and Metals Exploration go up and down completely randomly.
Pair Corralation between Coeur Mining and Metals Exploration
Assuming the 90 days trading horizon Coeur Mining is expected to generate 0.97 times more return on investment than Metals Exploration. However, Coeur Mining is 1.03 times less risky than Metals Exploration. It trades about 0.23 of its potential returns per unit of risk. Metals Exploration Plc is currently generating about 0.22 per unit of risk. If you would invest 568.00 in Coeur Mining on April 25, 2025 and sell it today you would earn a total of 383.00 from holding Coeur Mining or generate 67.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
Coeur Mining vs. Metals Exploration Plc
Performance |
Timeline |
Coeur Mining |
Metals Exploration Plc |
Coeur Mining and Metals Exploration Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coeur Mining and Metals Exploration
The main advantage of trading using opposite Coeur Mining and Metals Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Metals Exploration 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 Metals Exploration will offset losses from the drop in Metals Exploration's long position.Coeur Mining vs. Toyota Motor Corp | Coeur Mining vs. SoftBank Group Corp | Coeur Mining vs. OTP Bank Nyrt | Coeur Mining vs. State Bank of |
Metals Exploration vs. Endeavour Mining Corp | Metals Exploration vs. Ally Financial | Metals Exploration vs. AfriTin Mining | Metals Exploration vs. Moneta Money Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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