Correlation Between Coeur Mining and Gerresheimer
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Gerresheimer 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 Gerresheimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Gerresheimer AG, you can compare the effects of market volatilities on Coeur Mining and Gerresheimer 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 Gerresheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Gerresheimer.
Diversification Opportunities for Coeur Mining and Gerresheimer
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Gerresheimer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Gerresheimer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gerresheimer AG 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 Gerresheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gerresheimer AG has no effect on the direction of Coeur Mining i.e., Coeur Mining and Gerresheimer go up and down completely randomly.
Pair Corralation between Coeur Mining and Gerresheimer
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.61 times more return on investment than Gerresheimer. However, Coeur Mining is 1.61 times more volatile than Gerresheimer AG. It trades about 0.06 of its potential returns per unit of risk. Gerresheimer AG is currently generating about 0.02 per unit of risk. If you would invest 323.00 in Coeur Mining on August 24, 2024 and sell it today you would earn a total of 346.00 from holding Coeur Mining or generate 107.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Coeur Mining vs. Gerresheimer AG
Performance |
| Timeline |
| Coeur Mining |
| Gerresheimer AG |
Coeur Mining and Gerresheimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Gerresheimer
The main advantage of trading using opposite Coeur Mining and Gerresheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Gerresheimer 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 Gerresheimer will offset losses from the drop in Gerresheimer's long position.| Coeur Mining vs. Quadrise Plc | Coeur Mining vs. Intuitive Investments Group | Coeur Mining vs. European Metals Holdings | Coeur Mining vs. Athelney Trust plc |
| Gerresheimer vs. Bisichi Mining PLC | Gerresheimer vs. Summit Materials Cl | Gerresheimer vs. AfriTin Mining | Gerresheimer vs. Coeur Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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