Correlation Between Advanced Medical and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Advanced Medical 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 Advanced Medical and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Medical Solutions and Coeur Mining, you can compare the effects of market volatilities on Advanced Medical 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 Advanced Medical with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Medical and Coeur Mining.
Diversification Opportunities for Advanced Medical and Coeur Mining
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advanced and Coeur is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Advanced Medical 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 Advanced Medical Solutions 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 Advanced Medical i.e., Advanced Medical and Coeur Mining go up and down completely randomly.
Pair Corralation between Advanced Medical and Coeur Mining
Assuming the 90 days trading horizon Advanced Medical is expected to generate 1.05 times less return on investment than Coeur Mining. In addition to that, Advanced Medical is 1.26 times more volatile than Coeur Mining. It trades about 0.15 of its total potential returns per unit of risk. Coeur Mining is currently generating about 0.19 per unit of volatility. If you would invest 585.00 in Coeur Mining on October 25, 2024 and sell it today you would earn a total of 65.00 from holding Coeur Mining or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Advanced Medical Solutions vs. Coeur Mining
Performance |
| Timeline |
| Advanced Medical Sol |
| Coeur Mining |
Advanced Medical and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Medical and Coeur Mining
The main advantage of trading using opposite Advanced Medical and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Medical 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.| Advanced Medical vs. SupplyMe Capital PLC | Advanced Medical vs. SM Energy Co | Advanced Medical vs. FuelCell Energy | Advanced Medical vs. Grand Vision Media |
| Coeur Mining vs. Prosiebensat 1 Media | Coeur Mining vs. Live Nation Entertainment | Coeur Mining vs. Tavistock Investments Plc | Coeur Mining vs. Smithson Investment Trust |
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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