Correlation Between Coeur Mining and MT Bank

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

By analyzing existing cross correlation between Coeur Mining and MT Bank Corp, you can compare the effects of market volatilities on Coeur Mining and MT Bank 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 MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and MT Bank.

Diversification Opportunities for Coeur Mining and MT Bank

0.07

Correlation Coefficient

Coeur Mining  MT Bank

Significant diversification

The 3 months correlation between Coeur and 0JW2 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp 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 MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of Coeur Mining i.e., Coeur Mining and MT Bank go up and down completely randomly.

Pair Corralation between Coeur Mining and MT Bank

Assuming the 90 days trading horizon Coeur Mining is expected to generate 29.67 times less return on investment than MT Bank. In addition to that, Coeur Mining is 2.36 times more volatile than MT Bank Corp. It trades about 0.0 of its total potential returns per unit of risk. MT Bank Corp is currently generating about 0.12 per unit of volatility. If you would invest  14,544  in MT Bank Corp on October 4, 2024 and sell it today you would earn a total of  4,207  from holding MT Bank Corp or generate 28.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.85%
Values	Daily Returns

Coeur Mining  vs.  MT Bank Corp

Coeur Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coeur Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

MT Bank Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MT Bank Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, MT Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Coeur Mining and MT Bank

The main advantage of trading using opposite Coeur Mining and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.

The idea behind Coeur Mining and MT Bank Corp 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.

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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.