Correlation Between Coeur Mining and AB Volvo
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and AB Volvo 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 AB Volvo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and AB Volvo, you can compare the effects of market volatilities on Coeur Mining and AB Volvo 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 AB Volvo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and AB Volvo.
Diversification Opportunities for Coeur Mining and AB Volvo
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and VOL1 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and AB Volvo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Volvo 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 AB Volvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Volvo has no effect on the direction of Coeur Mining i.e., Coeur Mining and AB Volvo go up and down completely randomly.
Pair Corralation between Coeur Mining and AB Volvo
Assuming the 90 days horizon Coeur Mining is expected to generate 1.27 times less return on investment than AB Volvo. But when comparing it to its historical volatility, Coeur Mining is 1.33 times less risky than AB Volvo. It trades about 0.13 of its potential returns per unit of risk. AB Volvo is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,371 in AB Volvo on September 15, 2024 and sell it today you would earn a total of 84.00 from holding AB Volvo or generate 3.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Coeur Mining vs. AB Volvo
Performance |
Timeline |
Coeur Mining |
AB Volvo |
Coeur Mining and AB Volvo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coeur Mining and AB Volvo
The main advantage of trading using opposite Coeur Mining and AB Volvo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, AB Volvo 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 AB Volvo will offset losses from the drop in AB Volvo's long position.Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. SIVERS SEMICONDUCTORS AB | Coeur Mining vs. Reliance Steel Aluminum | Coeur Mining vs. CHINA HUARONG ENERHD 50 |
AB Volvo vs. Coeur Mining | AB Volvo vs. Direct Line Insurance | AB Volvo vs. QBE Insurance Group | AB Volvo vs. HANOVER INSURANCE |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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