Correlation Between Coeur Mining and Universal Health
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Universal Health 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 Universal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Universal Health Services, you can compare the effects of market volatilities on Coeur Mining and Universal Health 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 Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Universal Health.
Diversification Opportunities for Coeur Mining and Universal Health
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coeur and Universal is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Universal Health Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health Services 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 Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Services has no effect on the direction of Coeur Mining i.e., Coeur Mining and Universal Health go up and down completely randomly.
Pair Corralation between Coeur Mining and Universal Health
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.12 times more return on investment than Universal Health. However, Coeur Mining is 2.12 times more volatile than Universal Health Services. It trades about 0.12 of its potential returns per unit of risk. Universal Health Services is currently generating about 0.17 per unit of risk. If you would invest 616.00 in Coeur Mining on November 3, 2024 and sell it today you would earn a total of 53.00 from holding Coeur Mining or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Coeur Mining vs. Universal Health Services
Performance |
| Timeline |
| Coeur Mining |
| Universal Health Services |
Coeur Mining and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Universal Health
The main advantage of trading using opposite Coeur Mining and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Universal Health 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 Universal Health will offset losses from the drop in Universal Health's long position.| Coeur Mining vs. Seraphim Space Investment | Coeur Mining vs. Synchrony Financial | Coeur Mining vs. Discover Financial Services | Coeur Mining vs. Kinnevik Investment AB |
| Universal Health vs. Cairo Communication SpA | Universal Health vs. One Media iP | Universal Health vs. International Biotechnology Trust | Universal Health vs. Verizon Communications |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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