Correlation Between Coeur Mining and Regis Resources

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

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

Diversification Opportunities for Coeur Mining and Regis Resources

0.21

Correlation Coefficient

Coeur Mining  Regis Resources

Modest diversification

The 3 months correlation between Coeur and Regis is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Regis Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Resources 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 Regis Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Resources has no effect on the direction of Coeur Mining i.e., Coeur Mining and Regis Resources go up and down completely randomly.

Pair Corralation between Coeur Mining and Regis Resources

Considering the 90-day investment horizon Coeur Mining is expected to generate 1.11 times more return on investment than Regis Resources. However, Coeur Mining is 1.11 times more volatile than Regis Resources. It trades about 0.05 of its potential returns per unit of risk. Regis Resources is currently generating about 0.02 per unit of risk. If you would invest  374.00  in Coeur Mining on September 3, 2024 and sell it today you would earn a total of  245.00  from holding Coeur Mining or generate 65.51% return on investment over 90 days.

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

Coeur Mining  vs.  Regis Resources

Coeur Mining

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Coeur Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Regis Resources

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regis Resources are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Regis Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Coeur Mining and Regis Resources

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

The idea behind Coeur Mining and Regis Resources 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..