Correlation Between Fresenius Medical and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Fresenius Medical 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 Fresenius Medical and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresenius Medical Care and Coeur Mining, you can compare the effects of market volatilities on Fresenius Medical 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 Fresenius Medical with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius Medical and Coeur Mining.
Diversification Opportunities for Fresenius Medical and Coeur Mining
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fresenius and Coeur is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Fresenius Medical 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 Fresenius Medical Care 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 Fresenius Medical i.e., Fresenius Medical and Coeur Mining go up and down completely randomly.
Pair Corralation between Fresenius Medical and Coeur Mining
Assuming the 90 days trading horizon Fresenius Medical is expected to generate 2.25 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Fresenius Medical Care is 2.78 times less risky than Coeur Mining. It trades about 0.22 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 617.00 in Coeur Mining on November 7, 2024 and sell it today you would earn a total of 86.00 from holding Coeur Mining or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius Medical Care vs. Coeur Mining
Performance |
| Timeline |
| Fresenius Medical Care |
| Coeur Mining |
Fresenius Medical and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius Medical and Coeur Mining
The main advantage of trading using opposite Fresenius Medical and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius Medical 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.| Fresenius Medical vs. Eastman Chemical Co | Fresenius Medical vs. Air Products Chemicals | Fresenius Medical vs. Summit Materials Cl | Fresenius Medical vs. Wheaton Precious Metals |
| Coeur Mining vs. Jacquet Metal Service | Coeur Mining vs. Wheaton Precious Metals | Coeur Mining vs. Fevertree Drinks Plc | Coeur Mining vs. SBM Offshore NV |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |