Correlation Between Coeur Mining and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Advanced 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 Advanced 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 Advanced Medical Solutions, you can compare the effects of market volatilities on Coeur Mining and Advanced 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 Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Advanced Medical.
Diversification Opportunities for Coeur Mining and Advanced Medical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coeur and Advanced is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol 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 Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of Coeur Mining i.e., Coeur Mining and Advanced Medical go up and down completely randomly.
Pair Corralation between Coeur Mining and Advanced Medical
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.19 times more return on investment than Advanced Medical. However, Coeur Mining is 1.19 times more volatile than Advanced Medical Solutions. It trades about 0.04 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.05 per unit of risk. If you would invest 625.00 in Coeur Mining on October 25, 2024 and sell it today you would earn a total of 25.00 from holding Coeur Mining or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Coeur Mining vs. Advanced Medical Solutions
Performance |
| Timeline |
| Coeur Mining |
| Advanced Medical Sol |
Coeur Mining and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Advanced Medical
The main advantage of trading using opposite Coeur Mining and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Advanced 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 Advanced Medical will offset losses from the drop in Advanced Medical'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 |
| Advanced Medical vs. SupplyMe Capital PLC | Advanced Medical vs. SM Energy Co | Advanced Medical vs. FuelCell Energy | Advanced Medical vs. Grand Vision Media |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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