Correlation Between Veolia Environnement and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Veolia Environnement 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 Veolia Environnement and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veolia Environnement VE and Coeur Mining, you can compare the effects of market volatilities on Veolia Environnement 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 Veolia Environnement with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veolia Environnement and Coeur Mining.
Diversification Opportunities for Veolia Environnement and Coeur Mining
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Veolia and Coeur is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Veolia Environnement VE and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Veolia Environnement 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 Veolia Environnement VE 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 Veolia Environnement i.e., Veolia Environnement and Coeur Mining go up and down completely randomly.
Pair Corralation between Veolia Environnement and Coeur Mining
Assuming the 90 days trading horizon Veolia Environnement is expected to generate 9.26 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Veolia Environnement VE is 3.72 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 343.00 in Coeur Mining on November 1, 2024 and sell it today you would earn a total of 292.00 from holding Coeur Mining or generate 85.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Veolia Environnement VE vs. Coeur Mining
Performance |
| Timeline |
| Veolia Environnement |
| Coeur Mining |
Veolia Environnement and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veolia Environnement and Coeur Mining
The main advantage of trading using opposite Veolia Environnement and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veolia Environnement 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.| Veolia Environnement vs. Coeur Mining | Veolia Environnement vs. Auto Trader Group | Veolia Environnement vs. Charter Communications Cl | Veolia Environnement vs. Wheaton Precious Metals |
| Coeur Mining vs. Broadcom | Coeur Mining vs. Ross Stores | Coeur Mining vs. First Class Metals | Coeur Mining vs. Ebro Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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