Correlation Between Global Ship and Coeur Mining

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

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

Diversification Opportunities for Global Ship and Coeur Mining

0.02

Correlation Coefficient

Global Ship  Coeur Mining

Significant diversification

The 3 months correlation between Global and Coeur is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Global Ship 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 Global Ship Lease 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 Global Ship i.e., Global Ship and Coeur Mining go up and down completely randomly.

Pair Corralation between Global Ship and Coeur Mining

Assuming the 90 days horizon Global Ship Lease is expected to generate 1.73 times more return on investment than Coeur Mining. However, Global Ship is 1.73 times more volatile than Coeur Mining. It trades about 0.07 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.01 per unit of risk. If you would invest  1,992  in Global Ship Lease on November 29, 2024 and sell it today you would earn a total of  126.00  from holding Global Ship Lease or generate 6.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Ship Lease  vs.  Coeur Mining

Global Ship Lease

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Ship Lease are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Global Ship may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Coeur Mining

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Coeur Mining is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Global Ship and Coeur Mining

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

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.