Correlation Between Inspired Plc and Coeur Mining

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

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

Diversification Opportunities for Inspired Plc and Coeur Mining

0.16

Correlation Coefficient

Inspired Plc  Coeur Mining

Average diversification

The 3 months correlation between Inspired and Coeur is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Inspired Plc and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Inspired Plc 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 Inspired Plc 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 Inspired Plc i.e., Inspired Plc and Coeur Mining go up and down completely randomly.

Pair Corralation between Inspired Plc and Coeur Mining

Assuming the 90 days trading horizon Inspired Plc is expected to generate 0.9 times more return on investment than Coeur Mining. However, Inspired Plc is 1.11 times less risky than Coeur Mining. It trades about 0.15 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.04 per unit of risk. If you would invest  4,150  in Inspired Plc on December 23, 2024 and sell it today you would earn a total of  1,400  from holding Inspired Plc or generate 33.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Inspired Plc  vs.  Coeur Mining

Inspired Plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inspired Plc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Inspired Plc unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 comparatively unsteady basic indicators, Coeur Mining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Inspired Plc and Coeur Mining

The main advantage of trading using opposite Inspired Plc and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspired Plc 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 Inspired Plc 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.