Correlation Between Alphabet and Coeur Mining

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

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

Diversification Opportunities for Alphabet and Coeur Mining

0.05

Correlation Coefficient

Alphabet  Coeur Mining

Significant diversification

The 3 months correlation between Alphabet and Coeur is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Alphabet 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 Alphabet Inc Class C 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 Alphabet i.e., Alphabet and Coeur Mining go up and down completely randomly.

Pair Corralation between Alphabet and Coeur Mining

Given the investment horizon of 90 days Alphabet Inc Class C is expected to generate 0.52 times more return on investment than Coeur Mining. However, Alphabet Inc Class C is 1.91 times less risky than Coeur Mining. It trades about 0.01 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.08 per unit of risk. If you would invest  17,278  in Alphabet Inc Class C on December 1, 2024 and sell it today you would lose (56.00) from holding Alphabet Inc Class C or give up 0.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Alphabet Inc Class C  vs.  Coeur Mining

Alphabet Class C

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alphabet Inc Class C has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Alphabet is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with Alphabet and Coeur Mining

The main advantage of trading using opposite Alphabet and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet 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 Alphabet Inc Class C 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.

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