Correlation Between Coeur Mining and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Fresenius Medical 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 Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Fresenius Medical Care, you can compare the effects of market volatilities on Coeur Mining and Fresenius Medical 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 Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Fresenius Medical.
Diversification Opportunities for Coeur Mining and Fresenius Medical
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and Fresenius is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Fresenius Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius Medical Care 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 Fresenius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius Medical Care has no effect on the direction of Coeur Mining i.e., Coeur Mining and Fresenius Medical go up and down completely randomly.
Pair Corralation between Coeur Mining and Fresenius Medical
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.99 times more return on investment than Fresenius Medical. However, Coeur Mining is 1.99 times more volatile than Fresenius Medical Care. It trades about 0.05 of its potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.05 per unit of risk. If you would invest 336.00 in Coeur Mining on September 3, 2024 and sell it today you would earn a total of 327.00 from holding Coeur Mining or generate 97.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Coeur Mining vs. Fresenius Medical Care
Performance |
| Timeline |
| Coeur Mining |
| Fresenius Medical Care |
Coeur Mining and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Fresenius Medical
The main advantage of trading using opposite Coeur Mining and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Fresenius Medical 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 Fresenius Medical will offset losses from the drop in Fresenius Medical's long position.| Coeur Mining vs. Silvercorp Metals | Coeur Mining vs. Liberty Media Corp | Coeur Mining vs. Centaur Media | Coeur Mining vs. Empire Metals Limited |
| Fresenius Medical vs. Catalyst Media Group | Fresenius Medical vs. CATLIN GROUP | Fresenius Medical vs. Magnora ASA | Fresenius Medical vs. RTW Venture Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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