Correlation Between Coeur Mining and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Alamos Gold 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 Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Alamos Gold, you can compare the effects of market volatilities on Coeur Mining and Alamos Gold 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 Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Alamos Gold.
Diversification Opportunities for Coeur Mining and Alamos Gold
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coeur and Alamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold 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 Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of Coeur Mining i.e., Coeur Mining and Alamos Gold go up and down completely randomly.
Pair Corralation between Coeur Mining and Alamos Gold
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.77 times more return on investment than Alamos Gold. However, Coeur Mining is 1.77 times more volatile than Alamos Gold. It trades about 0.03 of its potential returns per unit of risk. Alamos Gold is currently generating about 0.05 per unit of risk. If you would invest 529.00 in Coeur Mining on March 11, 2024 and sell it today you would earn a total of 7.00 from holding Coeur Mining or generate 1.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Coeur Mining vs. Alamos Gold
Performance |
Timeline |
Coeur Mining |
Alamos Gold |
Coeur Mining and Alamos Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coeur Mining and Alamos Gold
The main advantage of trading using opposite Coeur Mining and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Alamos Gold 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.Coeur Mining vs. Franco Nevada | Coeur Mining vs. Royal Gold | Coeur Mining vs. Sandstorm Gold Ltd | Coeur Mining vs. SSR Mining |
Alamos Gold vs. Franco Nevada | Alamos Gold vs. Royal Gold | Alamos Gold vs. Sandstorm Gold Ltd | Alamos Gold vs. SSR Mining |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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