Correlation Between Colonial Coal and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Colonial Coal and Coronado Global 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 Colonial Coal and Coronado Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colonial Coal International and Coronado Global Resources, you can compare the effects of market volatilities on Colonial Coal and Coronado Global 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 Colonial Coal with a short position of Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colonial Coal and Coronado Global.
Diversification Opportunities for Colonial Coal and Coronado Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Colonial and Coronado is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Colonial Coal International and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources and Colonial Coal 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 Colonial Coal International are associated (or correlated) with Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Colonial Coal i.e., Colonial Coal and Coronado Global go up and down completely randomly.
Pair Corralation between Colonial Coal and Coronado Global
If you would invest (100.00) in Colonial Coal International on September 14, 2024 and sell it today you would earn a total of 100.00 from holding Colonial Coal International or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Colonial Coal International vs. Coronado Global Resources
Performance |
Timeline |
Colonial Coal Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coronado Global Resources |
Colonial Coal and Coronado Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Colonial Coal and Coronado Global
The main advantage of trading using opposite Colonial Coal and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colonial Coal position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.Colonial Coal vs. Coronado Global Resources | Colonial Coal vs. Arch Resources | Colonial Coal vs. Alpha Metallurgical Resources | Colonial Coal vs. Warrior Met Coal |
Coronado Global vs. Colonial Coal International | Coronado Global vs. Arch Resources | Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Warrior Met Coal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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