Correlation Between Coeur Mining and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Martin Marietta 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 Martin Marietta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Martin Marietta Materials, you can compare the effects of market volatilities on Coeur Mining and Martin Marietta 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 Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Martin Marietta.
Diversification Opportunities for Coeur Mining and Martin Marietta
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coeur and Martin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials 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 Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of Coeur Mining i.e., Coeur Mining and Martin Marietta go up and down completely randomly.
Pair Corralation between Coeur Mining and Martin Marietta
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.68 times more return on investment than Martin Marietta. However, Coeur Mining is 1.68 times more volatile than Martin Marietta Materials. It trades about 0.19 of its potential returns per unit of risk. Martin Marietta Materials is currently generating about 0.19 per unit of risk. If you would invest 585.00 in Coeur Mining on October 25, 2024 and sell it today you would earn a total of 65.00 from holding Coeur Mining or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Coeur Mining vs. Martin Marietta Materials
Performance |
| Timeline |
| Coeur Mining |
| Martin Marietta Materials |
Coeur Mining and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Martin Marietta
The main advantage of trading using opposite Coeur Mining and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| Coeur Mining vs. Prosiebensat 1 Media | Coeur Mining vs. Live Nation Entertainment | Coeur Mining vs. Tavistock Investments Plc | Coeur Mining vs. Smithson Investment Trust |
| Martin Marietta vs. Toyota Motor Corp | Martin Marietta vs. SoftBank Group Corp | Martin Marietta vs. OTP Bank Nyrt | Martin Marietta vs. ONEOK Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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