Correlation Between Genesco and Coeur Mining

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

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

Diversification Opportunities for Genesco and Coeur Mining

-0.28

Correlation Coefficient

Genesco  Coeur Mining

Very good diversification

The 3 months correlation between Genesco and Coeur is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Genesco and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Genesco 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 Genesco 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 Genesco i.e., Genesco and Coeur Mining go up and down completely randomly.

Pair Corralation between Genesco and Coeur Mining

Considering the 90-day investment horizon Genesco is expected to generate 0.93 times more return on investment than Coeur Mining. However, Genesco is 1.08 times less risky than Coeur Mining. It trades about 0.26 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.03 per unit of risk. If you would invest  2,945  in Genesco on October 7, 2024 and sell it today you would earn a total of  1,324  from holding Genesco or generate 44.96% return on investment over 90 days.

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

Genesco  vs.  Coeur Mining

Genesco

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Genesco are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Genesco displayed solid returns over the last few months and may actually be approaching a breakup point.

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 rather sound fundamental indicators, Coeur Mining is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Genesco and Coeur Mining

The main advantage of trading using opposite Genesco and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesco 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 Genesco 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.