Correlation Between Coeur Mining and Primary Health
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Primary 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 Primary 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 Primary Health Properties, you can compare the effects of market volatilities on Coeur Mining and Primary 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 Primary Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Primary Health.
Diversification Opportunities for Coeur Mining and Primary Health
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coeur and Primary is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Primary Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primary Health Properties 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 Primary Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primary Health Properties has no effect on the direction of Coeur Mining i.e., Coeur Mining and Primary Health go up and down completely randomly.
Pair Corralation between Coeur Mining and Primary Health
Assuming the 90 days trading horizon Coeur Mining is expected to generate 2.61 times more return on investment than Primary Health. However, Coeur Mining is 2.61 times more volatile than Primary Health Properties. It trades about 0.12 of its potential returns per unit of risk. Primary Health Properties is currently generating about 0.15 per unit of risk. If you would invest 617.00 in Coeur Mining on November 5, 2024 and sell it today you would earn a total of 52.00 from holding Coeur Mining or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Primary Health Properties
Performance |
| Timeline |
| Coeur Mining |
| Primary Health Properties |
Coeur Mining and Primary Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Primary Health
The main advantage of trading using opposite Coeur Mining and Primary Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Primary 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 Primary Health will offset losses from the drop in Primary 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 |
| Primary Health vs. Cairn Homes PLC | Primary Health vs. American Homes 4 | Primary Health vs. Verizon Communications | Primary Health vs. Taiwan Semiconductor Manufacturing |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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