Correlation Between Capital Metals and Coeur Mining

Can any of the company-specific risk be diversified away by investing in both Capital Metals 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 Capital Metals and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capital Metals PLC and Coeur Mining, you can compare the effects of market volatilities on Capital Metals 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 Capital Metals with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Metals and Coeur Mining.

Diversification Opportunities for Capital Metals and Coeur Mining

0.64

Correlation Coefficient

Capital Metals  Coeur Mining

Poor diversification

The 3 months correlation between Capital and Coeur is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Capital Metals PLC and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Capital Metals 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 Capital Metals PLC 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 Capital Metals i.e., Capital Metals and Coeur Mining go up and down completely randomly.

Pair Corralation between Capital Metals and Coeur Mining

Assuming the 90 days trading horizon Capital Metals is expected to generate 3.25 times less return on investment than Coeur Mining. In addition to that, Capital Metals is 1.05 times more volatile than Coeur Mining. It trades about 0.07 of its total potential returns per unit of risk. Coeur Mining is currently generating about 0.23 per unit of volatility. 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

Capital Metals PLC  vs.  Coeur Mining

Capital Metals PLC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Capital Metals PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Capital Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Coeur Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Coeur Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Capital Metals and Coeur Mining

The main advantage of trading using opposite Capital Metals and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Metals 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.

The idea behind Capital Metals PLC and Coeur Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.