Correlation Between Coeur Mining and Medtronic PLC
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Medtronic PLC 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 Medtronic PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Medtronic PLC, you can compare the effects of market volatilities on Coeur Mining and Medtronic PLC 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 Medtronic PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Medtronic PLC.
Diversification Opportunities for Coeur Mining and Medtronic PLC
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Medtronic is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Medtronic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic PLC 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 Medtronic PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic PLC has no effect on the direction of Coeur Mining i.e., Coeur Mining and Medtronic PLC go up and down completely randomly.
Pair Corralation between Coeur Mining and Medtronic PLC
Assuming the 90 days horizon Coeur Mining is expected to under-perform the Medtronic PLC. In addition to that, Coeur Mining is 1.14 times more volatile than Medtronic PLC. It trades about -0.05 of its total potential returns per unit of risk. Medtronic PLC is currently generating about 0.03 per unit of volatility. If you would invest 6,827 in Medtronic PLC on September 13, 2024 and sell it today you would earn a total of 1,141 from holding Medtronic PLC or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Coeur Mining vs. Medtronic PLC
Performance |
| Timeline |
| Coeur Mining |
| Medtronic PLC |
Coeur Mining and Medtronic PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Medtronic PLC
The main advantage of trading using opposite Coeur Mining and Medtronic PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Medtronic PLC 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 Medtronic PLC will offset losses from the drop in Medtronic PLC's long position.| 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 |
| Medtronic PLC vs. Coeur Mining | Medtronic PLC vs. United Rentals | Medtronic PLC vs. Zijin Mining Group | Medtronic PLC vs. MINCO SILVER |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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