Correlation Between Consol Energy and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Coupang LLC 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 Consol Energy and Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Coupang LLC, you can compare the effects of market volatilities on Consol Energy and Coupang LLC 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 Consol Energy with a short position of Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Coupang LLC.
Diversification Opportunities for Consol Energy and Coupang LLC
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Consol and Coupang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and Consol Energy 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 Consol Energy are associated (or correlated) with Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Consol Energy i.e., Consol Energy and Coupang LLC go up and down completely randomly.
Pair Corralation between Consol Energy and Coupang LLC
Given the investment horizon of 90 days Consol Energy is expected to generate 0.91 times more return on investment than Coupang LLC. However, Consol Energy is 1.1 times less risky than Coupang LLC. It trades about 0.34 of its potential returns per unit of risk. Coupang LLC is currently generating about -0.06 per unit of risk. If you would invest 10,612 in Consol Energy on August 24, 2024 and sell it today you would earn a total of 2,652 from holding Consol Energy or generate 24.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Coupang LLC
Performance |
| Timeline |
| Consol Energy |
| Coupang LLC |
Consol Energy and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Coupang LLC
The main advantage of trading using opposite Consol Energy and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC's long position.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |