Correlation Between Coeur Mining and MODIVCARE INC
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and MODIVCARE INC 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 MODIVCARE INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and MODIVCARE INC DL 001, you can compare the effects of market volatilities on Coeur Mining and MODIVCARE INC 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 MODIVCARE INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and MODIVCARE INC.
Diversification Opportunities for Coeur Mining and MODIVCARE INC
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coeur and MODIVCARE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and MODIVCARE INC DL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MODIVCARE INC DL 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 MODIVCARE INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MODIVCARE INC DL has no effect on the direction of Coeur Mining i.e., Coeur Mining and MODIVCARE INC go up and down completely randomly.
Pair Corralation between Coeur Mining and MODIVCARE INC
Assuming the 90 days horizon Coeur Mining is expected to generate 14.0 times less return on investment than MODIVCARE INC. But when comparing it to its historical volatility, Coeur Mining is 3.0 times less risky than MODIVCARE INC. It trades about 0.05 of its potential returns per unit of risk. MODIVCARE INC DL 001 is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,480 in MODIVCARE INC DL 001 on September 13, 2024 and sell it today you would earn a total of 270.00 from holding MODIVCARE INC DL 001 or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Coeur Mining vs. MODIVCARE INC DL 001
Performance |
| Timeline |
| Coeur Mining |
| MODIVCARE INC DL |
Coeur Mining and MODIVCARE INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and MODIVCARE INC
The main advantage of trading using opposite Coeur Mining and MODIVCARE INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, MODIVCARE INC 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 MODIVCARE INC will offset losses from the drop in MODIVCARE INC'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 |
| MODIVCARE INC vs. JD HEALTH INTL | MODIVCARE INC vs. Fresenius SE Co | MODIVCARE INC vs. Fresenius Medical Care | MODIVCARE INC vs. Sonic Healthcare Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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