Correlation Between Coeur Mining and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Ion Beam 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 Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Ion Beam Applications, you can compare the effects of market volatilities on Coeur Mining and Ion Beam 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 Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Ion Beam.
Diversification Opportunities for Coeur Mining and Ion Beam
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Ion is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications 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 Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Coeur Mining i.e., Coeur Mining and Ion Beam go up and down completely randomly.
Pair Corralation between Coeur Mining and Ion Beam
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.75 times more return on investment than Ion Beam. However, Coeur Mining is 1.75 times more volatile than Ion Beam Applications. It trades about 0.05 of its potential returns per unit of risk. Ion Beam Applications is currently generating about 0.0 per unit of risk. If you would invest 346.00 in Coeur Mining on September 26, 2024 and sell it today you would earn a total of 239.00 from holding Coeur Mining or generate 69.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.4% |
Values | Daily Returns |
Coeur Mining vs. Ion Beam Applications
Performance |
Timeline |
Coeur Mining |
Ion Beam Applications |
Coeur Mining and Ion Beam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coeur Mining and Ion Beam
The main advantage of trading using opposite Coeur Mining and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group PLC |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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