Correlation Between Coeur Mining and Judges Scientific

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

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

Diversification Opportunities for Coeur Mining and Judges Scientific

-0.36

Correlation Coefficient

Coeur Mining  Judges Scientific

Very good diversification

The 3 months correlation between Coeur and Judges is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Judges Scientific Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Judges Scientific 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 Judges Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Judges Scientific Plc has no effect on the direction of Coeur Mining i.e., Coeur Mining and Judges Scientific go up and down completely randomly.

Pair Corralation between Coeur Mining and Judges Scientific

Assuming the 90 days trading horizon Coeur Mining is expected to under-perform the Judges Scientific. In addition to that, Coeur Mining is 1.58 times more volatile than Judges Scientific Plc. It trades about -0.35 of its total potential returns per unit of risk. Judges Scientific Plc is currently generating about 0.25 per unit of volatility. If you would invest  714,000  in Judges Scientific Plc on December 4, 2024 and sell it today you would earn a total of  86,000  from holding Judges Scientific Plc or generate 12.04% 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.  Judges Scientific Plc

Coeur Mining

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Judges Scientific Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Judges Scientific Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Judges Scientific is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Coeur Mining and Judges Scientific

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

The idea behind Coeur Mining and Judges Scientific Plc 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.