Correlation Between Coeur Mining and Vulcan Materials

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

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

Diversification Opportunities for Coeur Mining and Vulcan Materials

0.08

Correlation Coefficient

Coeur Mining  Vulcan Materials

Significant diversification

The 3 months correlation between Coeur and Vulcan is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials 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 Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of Coeur Mining i.e., Coeur Mining and Vulcan Materials go up and down completely randomly.

Pair Corralation between Coeur Mining and Vulcan Materials

Assuming the 90 days horizon Coeur Mining is expected to under-perform the Vulcan Materials. But the stock apears to be less risky and, when comparing its historical volatility, Coeur Mining is 1.13 times less risky than Vulcan Materials. The stock trades about -0.02 of its potential returns per unit of risk. The Vulcan Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  19,634  in Vulcan Materials on April 20, 2025 and sell it today you would earn a total of  2,966  from holding Vulcan Materials or generate 15.11% return on investment over 90 days.

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

Coeur Mining  vs.  Vulcan Materials

Coeur Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 18 (%) 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.

Vulcan Materials

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Materials are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vulcan Materials may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Coeur Mining and Vulcan Materials

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

The idea behind Coeur Mining and Vulcan Materials 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.