Correlation Between Deltex Medical and Coeur Mining

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

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

Diversification Opportunities for Deltex Medical and Coeur Mining

0.4

Correlation Coefficient

Deltex Medical  Coeur Mining

Very weak diversification

The 3 months correlation between Deltex and Coeur is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Deltex Medical Group and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Deltex Medical 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 Deltex Medical Group are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Deltex Medical i.e., Deltex Medical and Coeur Mining go up and down completely randomly.

Pair Corralation between Deltex Medical and Coeur Mining

Assuming the 90 days trading horizon Deltex Medical Group is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, Deltex Medical Group is 1.29 times less risky than Coeur Mining. The stock trades about -0.16 of its potential returns per unit of risk. The Coeur Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  645.00  in Coeur Mining on October 15, 2024 and sell it today you would earn a total of  11.00  from holding Coeur Mining or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Deltex Medical Group  vs.  Coeur Mining

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

Coeur Mining

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Coeur Mining is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Deltex Medical and Coeur Mining

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

The idea behind Deltex Medical Group and Coeur Mining 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.