Correlation Between Coeur Mining and Global X

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

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

Diversification Opportunities for Coeur Mining and Global X

0.22

Correlation Coefficient

Coeur Mining  Global X

Modest diversification

The 3 months correlation between Coeur and Global is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Global X Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Silver 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Silver has no effect on the direction of Coeur Mining i.e., Coeur Mining and Global X go up and down completely randomly.

Pair Corralation between Coeur Mining and Global X

Considering the 90-day investment horizon Coeur Mining is expected to generate 1.93 times less return on investment than Global X. In addition to that, Coeur Mining is 1.97 times more volatile than Global X Silver. It trades about 0.05 of its total potential returns per unit of risk. Global X Silver is currently generating about 0.17 per unit of volatility. If you would invest  3,240  in Global X Silver on December 27, 2024 and sell it today you would earn a total of  713.00  from holding Global X Silver or generate 22.01% 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.  Global X Silver

Coeur Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Coeur Mining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Global X Silver

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Silver are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite sluggish forward indicators, Global X disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Coeur Mining and Global X

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

The idea behind Coeur Mining and Global X Silver 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.