Correlation Between Coeur Mining and Deltex Medical

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

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

Diversification Opportunities for Coeur Mining and Deltex Medical

0.43

Correlation Coefficient

Coeur Mining  Deltex Medical

Very weak diversification

The 3 months correlation between Coeur and Deltex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Deltex Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deltex Medical Group 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 Deltex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deltex Medical Group has no effect on the direction of Coeur Mining i.e., Coeur Mining and Deltex Medical go up and down completely randomly.

Pair Corralation between Coeur Mining and Deltex Medical

Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.13 times more return on investment than Deltex Medical. However, Coeur Mining is 1.13 times more volatile than Deltex Medical Group. It trades about -0.06 of its potential returns per unit of risk. Deltex Medical Group is currently generating about -0.2 per unit of risk. If you would invest  677.00  in Coeur Mining on September 27, 2024 and sell it today you would lose (87.00) from holding Coeur Mining or give up 12.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.73%
Values	Daily Returns

Coeur Mining  vs.  Deltex Medical Group

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Deltex Medical Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deltex Medical Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Coeur Mining and Deltex Medical

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

The idea behind Coeur Mining and Deltex Medical Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.