Correlation Between Coeur Mining and Heidelberg Materials
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Heidelberg Materials 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 Heidelberg Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Heidelberg Materials AG, you can compare the effects of market volatilities on Coeur Mining and Heidelberg Materials 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 Heidelberg Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Heidelberg Materials.
Diversification Opportunities for Coeur Mining and Heidelberg Materials
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and Heidelberg is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Heidelberg Materials AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heidelberg Materials 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 Heidelberg Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heidelberg Materials has no effect on the direction of Coeur Mining i.e., Coeur Mining and Heidelberg Materials go up and down completely randomly.
Pair Corralation between Coeur Mining and Heidelberg Materials
Assuming the 90 days horizon Coeur Mining is expected to generate 141.48 times less return on investment than Heidelberg Materials. But when comparing it to its historical volatility, Coeur Mining is 5.16 times less risky than Heidelberg Materials. It trades about 0.01 of its potential returns per unit of risk. Heidelberg Materials AG is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 13,535 in Heidelberg Materials AG on December 6, 2024 and sell it today you would earn a total of 2,880 from holding Heidelberg Materials AG or generate 21.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Coeur Mining vs. Heidelberg Materials AG
Performance |
| Timeline |
| Coeur Mining |
| Heidelberg Materials |
Coeur Mining and Heidelberg Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Heidelberg Materials
The main advantage of trading using opposite Coeur Mining and Heidelberg Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Heidelberg Materials 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 Heidelberg Materials will offset losses from the drop in Heidelberg Materials' long position.| Coeur Mining vs. Federal Agricultural Mortgage | Coeur Mining vs. MAVEN WIRELESS SWEDEN | Coeur Mining vs. Costco Wholesale | Coeur Mining vs. Fast Retailing Co |
| Heidelberg Materials vs. Tianjin Capital Environmental | Heidelberg Materials vs. Gruppo Mutuionline SpA | Heidelberg Materials vs. IRONVELD PLC LS | Heidelberg Materials vs. MUTUIONLINE |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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