Correlation Between Coeur Mining and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Naturhouse 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 Naturhouse 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 Naturhouse Health SA, you can compare the effects of market volatilities on Coeur Mining and Naturhouse 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 Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Naturhouse Health.
Diversification Opportunities for Coeur Mining and Naturhouse Health
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coeur and Naturhouse is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health 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 Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of Coeur Mining i.e., Coeur Mining and Naturhouse Health go up and down completely randomly.
Pair Corralation between Coeur Mining and Naturhouse Health
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.58 times more return on investment than Naturhouse Health. However, Coeur Mining is 2.58 times more volatile than Naturhouse Health SA. It trades about 0.18 of its potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.09 per unit of risk. If you would invest 617.00 in Coeur Mining on November 7, 2024 and sell it today you would earn a total of 86.00 from holding Coeur Mining or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Coeur Mining vs. Naturhouse Health SA
Performance |
| Timeline |
| Coeur Mining |
| Naturhouse Health |
Coeur Mining and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Naturhouse Health
The main advantage of trading using opposite Coeur Mining and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Naturhouse 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 Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Samsung Electronics Co | Coeur Mining vs. Toyota Motor Corp | Coeur Mining vs. Reliance Industries Ltd |
| Naturhouse Health vs. Zoom Video Communications | Naturhouse Health vs. Orient Telecoms | Naturhouse Health vs. Zegona Communications Plc | Naturhouse Health vs. Optima Health plc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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