Correlation Between Consol Energy and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Copperbank Resources 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 Copperbank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Copperbank Resources Corp, you can compare the effects of market volatilities on Consol Energy and Copperbank Resources 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 Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Copperbank Resources.
Diversification Opportunities for Consol Energy and Copperbank Resources
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Consol and Copperbank is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp 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 Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Consol Energy i.e., Consol Energy and Copperbank Resources go up and down completely randomly.
Pair Corralation between Consol Energy and Copperbank Resources
Given the investment horizon of 90 days Consol Energy is expected to generate 0.71 times more return on investment than Copperbank Resources. However, Consol Energy is 1.41 times less risky than Copperbank Resources. It trades about 0.05 of its potential returns per unit of risk. Copperbank Resources Corp is currently generating about 0.02 per unit of risk. If you would invest 5,922 in Consol Energy on October 12, 2024 and sell it today you would earn a total of 4,137 from holding Consol Energy or generate 69.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Copperbank Resources Corp
Performance |
| Timeline |
| Consol Energy |
| Copperbank Resources Corp |
Consol Energy and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Copperbank Resources
The main advantage of trading using opposite Consol Energy and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Copperbank Resources 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Arizona Sonoran Copper | Copperbank Resources vs. Dor Copper Mining | Copperbank Resources vs. CopperCorp Resources |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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