Correlation Between Medtronic PLC and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Medtronic PLC and Coeur Mining 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 Medtronic PLC and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medtronic PLC and Coeur Mining, you can compare the effects of market volatilities on Medtronic PLC and Coeur Mining 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 Medtronic PLC with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medtronic PLC and Coeur Mining.
Diversification Opportunities for Medtronic PLC and Coeur Mining
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medtronic and Coeur is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Medtronic PLC and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Medtronic PLC 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 Medtronic PLC are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Medtronic PLC i.e., Medtronic PLC and Coeur Mining go up and down completely randomly.
Pair Corralation between Medtronic PLC and Coeur Mining
Assuming the 90 days trading horizon Medtronic PLC is expected to under-perform the Coeur Mining. In addition to that, Medtronic PLC is 1.06 times more volatile than Coeur Mining. It trades about -0.14 of its total potential returns per unit of risk. Coeur Mining is currently generating about 0.05 per unit of volatility. If you would invest 360.00 in Coeur Mining on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Coeur Mining or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Medtronic PLC vs. Coeur Mining
Performance |
| Timeline |
| Medtronic PLC |
| Coeur Mining |
Medtronic PLC and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medtronic PLC and Coeur Mining
The main advantage of trading using opposite Medtronic PLC and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medtronic PLC position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Medtronic PLC vs. Coeur Mining | Medtronic PLC vs. United Rentals | Medtronic PLC vs. Zijin Mining Group | Medtronic PLC vs. MINCO SILVER |
| Coeur Mining vs. Superior Plus Corp | Coeur Mining vs. SIVERS SEMICONDUCTORS AB | Coeur Mining vs. Reliance Steel Aluminum | Coeur Mining vs. CHINA HUARONG ENERHD 50 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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