Correlation Between Coeur Mining and Fastenal

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

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

Diversification Opportunities for Coeur Mining and Fastenal

0.27

Correlation Coefficient

Coeur Mining  Fastenal

Modest diversification

The 3 months correlation between Coeur and Fastenal is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Fastenal Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastenal 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 Fastenal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastenal has no effect on the direction of Coeur Mining i.e., Coeur Mining and Fastenal go up and down completely randomly.

Pair Corralation between Coeur Mining and Fastenal

Assuming the 90 days horizon Coeur Mining is expected to generate 0.98 times more return on investment than Fastenal. However, Coeur Mining is 1.02 times less risky than Fastenal. It trades about 0.18 of its potential returns per unit of risk. Fastenal Company is currently generating about -0.05 per unit of risk. If you would invest  388.00  in Coeur Mining on July 17, 2025 and sell it today you would earn a total of  76.00  from holding Coeur Mining or generate 19.59% return on investment over 90 days.

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

Coeur Mining  vs.  Fastenal Company

Coeur Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Coeur Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Fastenal

Risk-Adjusted Performance

Weakest

Over the last 90 days Fastenal Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Fastenal is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Coeur Mining and Fastenal

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

The idea behind Coeur Mining and Fastenal Company 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.