Correlation Between Coeur Mining and Pan American
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Pan American 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 Pan American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Pan American Silver, you can compare the effects of market volatilities on Coeur Mining and Pan American 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 Pan American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Pan American.
Diversification Opportunities for Coeur Mining and Pan American
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coeur and Pan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Pan American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan American 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 Pan American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan American Silver has no effect on the direction of Coeur Mining i.e., Coeur Mining and Pan American go up and down completely randomly.
Pair Corralation between Coeur Mining and Pan American
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.24 times less return on investment than Pan American. In addition to that, Coeur Mining is 1.43 times more volatile than Pan American Silver. It trades about 0.17 of its total potential returns per unit of risk. Pan American Silver is currently generating about 0.31 per unit of volatility. If you would invest 1,518 in Pan American Silver on February 28, 2024 and sell it today you would earn a total of 746.00 from holding Pan American Silver or generate 49.14% 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. Pan American Silver
Performance |
Timeline |
Coeur Mining |
Pan American Silver |
Coeur Mining and Pan American Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coeur Mining and Pan American
The main advantage of trading using opposite Coeur Mining and Pan American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Pan American 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 Pan American will offset losses from the drop in Pan American's long position.Coeur Mining vs. Paramount Gold Nevada | Coeur Mining vs. Liberty Gold Corp | Coeur Mining vs. International Tower Hill | Coeur Mining vs. Allegiant Gold |
Pan American vs. Paramount Gold Nevada | Pan American vs. Liberty Gold Corp | Pan American vs. International Tower Hill | Pan American vs. Allegiant Gold |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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