Correlation Between Consol Energy and Femasys
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Femasys 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 Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Femasys, you can compare the effects of market volatilities on Consol Energy and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Femasys.
Diversification Opportunities for Consol Energy and Femasys
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Consol and Femasys is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Consol Energy i.e., Consol Energy and Femasys go up and down completely randomly.
Pair Corralation between Consol Energy and Femasys
Given the investment horizon of 90 days Consol Energy is expected to generate 4.74 times less return on investment than Femasys. But when comparing it to its historical volatility, Consol Energy is 6.68 times less risky than Femasys. It trades about 0.06 of its potential returns per unit of risk. Femasys is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Femasys on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Femasys or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Femasys
Performance |
| Timeline |
| Consol Energy |
| Femasys |
Consol Energy and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Femasys
The main advantage of trading using opposite Consol Energy and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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