Correlation Between AfriTin Mining and Coeur Mining

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

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

Diversification Opportunities for AfriTin Mining and Coeur Mining

-0.58

Correlation Coefficient

AfriTin Mining  Coeur Mining

Excellent diversification

The 3 months correlation between AfriTin and Coeur is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and AfriTin 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 AfriTin Mining 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 AfriTin Mining i.e., AfriTin Mining and Coeur Mining go up and down completely randomly.

Pair Corralation between AfriTin Mining and Coeur Mining

Assuming the 90 days trading horizon AfriTin Mining is expected to generate 15.28 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, AfriTin Mining is 1.69 times less risky than Coeur Mining. It trades about 0.02 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  573.00  in Coeur Mining on May 7, 2025 and sell it today you would earn a total of  338.00  from holding Coeur Mining or generate 58.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

AfriTin Mining  vs.  Coeur Mining

AfriTin Mining

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AfriTin Mining are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, AfriTin Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Coeur Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Coeur Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AfriTin Mining and Coeur Mining

The main advantage of trading using opposite AfriTin Mining and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining 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 AfriTin Mining 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.