Correlation Between Coeur Mining and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Mfs Emerging 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 Mfs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Mfs Emerging Markets, you can compare the effects of market volatilities on Coeur Mining and Mfs Emerging 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 Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Mfs Emerging.
Diversification Opportunities for Coeur Mining and Mfs Emerging
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coeur and Mfs is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets 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 Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Coeur Mining i.e., Coeur Mining and Mfs Emerging go up and down completely randomly.
Pair Corralation between Coeur Mining and Mfs Emerging
Considering the 90-day investment horizon Coeur Mining is expected to generate 10.86 times more return on investment than Mfs Emerging. However, Coeur Mining is 10.86 times more volatile than Mfs Emerging Markets. It trades about 0.23 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about -0.34 per unit of risk. If you would invest 343.00 in Coeur Mining on January 24, 2024 and sell it today you would earn a total of 83.00 from holding Coeur Mining or generate 24.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Coeur Mining vs. Mfs Emerging Markets
Performance |
| Timeline |
| Coeur Mining |
| Mfs Emerging Markets |
Coeur Mining and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Mfs Emerging
The main advantage of trading using opposite Coeur Mining and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Mfs Emerging 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 Mfs Emerging will offset losses from the drop in Mfs Emerging's long position.The idea behind Coeur Mining and Mfs Emerging Markets 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.| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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