Correlation Between Coeur Mining and Air Products

Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Air Products 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 Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coeur Mining and Air Products Chemicals, you can compare the effects of market volatilities on Coeur Mining and Air Products 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 Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Air Products.

Diversification Opportunities for Coeur Mining and Air Products

0.46

Correlation Coefficient

Coeur Mining  Air Products

Very weak diversification

The 3 months correlation between Coeur and Air is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals 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 Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products Chemicals has no effect on the direction of Coeur Mining i.e., Coeur Mining and Air Products go up and down completely randomly.

Pair Corralation between Coeur Mining and Air Products

Assuming the 90 days trading horizon Coeur Mining is expected to generate 3.34 times more return on investment than Air Products. However, Coeur Mining is 3.34 times more volatile than Air Products Chemicals. It trades about 0.04 of its potential returns per unit of risk. Air Products Chemicals is currently generating about -0.13 per unit of risk. If you would invest  585.00  in Coeur Mining on October 7, 2024 and sell it today you would earn a total of  24.00  from holding Coeur Mining or generate 4.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Coeur Mining  vs.  Air Products Chemicals

Coeur Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coeur Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Coeur Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Air Products Chemicals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Air Products Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Coeur Mining and Air Products

The main advantage of trading using opposite Coeur Mining and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.

The idea behind Coeur Mining and Air Products Chemicals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.