Correlation Between Coeur Mining and Prudential Financial

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

By analyzing existing cross correlation between Coeur Mining and Prudential Financial 4125, you can compare the effects of market volatilities on Coeur Mining and Prudential Financial 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 Prudential Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Prudential Financial.

Diversification Opportunities for Coeur Mining and Prudential Financial

0.48

Correlation Coefficient

Coeur Mining  Prudential Financial

Very weak diversification

The 3 months correlation between Coeur and Prudential is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Prudential Financial 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Financial 4125 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 Prudential Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Financial 4125 has no effect on the direction of Coeur Mining i.e., Coeur Mining and Prudential Financial go up and down completely randomly.

Pair Corralation between Coeur Mining and Prudential Financial

Considering the 90-day investment horizon Coeur Mining is expected to generate 5.73 times more return on investment than Prudential Financial. However, Coeur Mining is 5.73 times more volatile than Prudential Financial 4125. It trades about 0.2 of its potential returns per unit of risk. Prudential Financial 4125 is currently generating about 0.11 per unit of risk. If you would invest  579.00  in Coeur Mining on May 6, 2025 and sell it today you would earn a total of  342.00  from holding Coeur Mining or generate 59.07% 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.  Prudential Financial 4125

Coeur Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Coeur Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Prudential Financial 4125

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential Financial 4125 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Prudential Financial is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Coeur Mining and Prudential Financial

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

The idea behind Coeur Mining and Prudential Financial 4125 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.