Correlation Between Coeur Mining and Microsoft
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Microsoft 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 Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Microsoft, you can compare the effects of market volatilities on Coeur Mining and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Microsoft.
Diversification Opportunities for Coeur Mining and Microsoft
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coeur and Microsoft is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Coeur Mining i.e., Coeur Mining and Microsoft go up and down completely randomly.
Pair Corralation between Coeur Mining and Microsoft
Assuming the 90 days horizon Coeur Mining is expected to generate 1.77 times more return on investment than Microsoft. However, Coeur Mining is 1.77 times more volatile than Microsoft. It trades about 0.2 of its potential returns per unit of risk. Microsoft is currently generating about 0.04 per unit of risk. If you would invest 348.00 in Coeur Mining on June 9, 2025 and sell it today you would earn a total of 88.00 from holding Coeur Mining or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Microsoft
Performance |
| Timeline |
| Coeur Mining |
| Microsoft |
Coeur Mining and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Microsoft
The main advantage of trading using opposite Coeur Mining and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| Coeur Mining vs. Mitsui Fudosan Co | Coeur Mining vs. Deutsche Wohnen SE | Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. AUREA SA INH |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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