Correlation Between HCA Healthcare and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both HCA Healthcare 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 HCA Healthcare and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCA Healthcare and Coeur Mining, you can compare the effects of market volatilities on HCA Healthcare 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 HCA Healthcare with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCA Healthcare and Coeur Mining.
Diversification Opportunities for HCA Healthcare and Coeur Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HCA and Coeur is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding HCA Healthcare and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and HCA Healthcare 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 HCA Healthcare 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 HCA Healthcare i.e., HCA Healthcare and Coeur Mining go up and down completely randomly.
Pair Corralation between HCA Healthcare and Coeur Mining
Assuming the 90 days trading horizon HCA Healthcare is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, HCA Healthcare is 2.71 times less risky than Coeur Mining. The stock trades about -0.34 of its potential returns per unit of risk. The Coeur Mining is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Coeur Mining on September 5, 2024 and sell it today you would earn a total of 74.00 from holding Coeur Mining or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HCA Healthcare vs. Coeur Mining
Performance |
| Timeline |
| HCA Healthcare |
| Coeur Mining |
HCA Healthcare and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCA Healthcare and Coeur Mining
The main advantage of trading using opposite HCA Healthcare and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCA Healthcare 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.| HCA Healthcare vs. Samsung Electronics Co | HCA Healthcare vs. Samsung Electronics Co | HCA Healthcare vs. Hyundai Motor | HCA Healthcare vs. Toyota Motor Corp |
| Coeur Mining vs. Planet Fitness Cl | Coeur Mining vs. HCA Healthcare | Coeur Mining vs. Impax Environmental Markets | Coeur Mining vs. Spire Healthcare Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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