Correlation Between Consol Energy and Green
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Green 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 Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Green And Hill, you can compare the effects of market volatilities on Consol Energy and Green 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 Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Green.
Diversification Opportunities for Consol Energy and Green
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consol and Green is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Green And Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green And Hill 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 Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green And Hill has no effect on the direction of Consol Energy i.e., Consol Energy and Green go up and down completely randomly.
Pair Corralation between Consol Energy and Green
Given the investment horizon of 90 days Consol Energy is expected to generate 489.8 times less return on investment than Green. But when comparing it to its historical volatility, Consol Energy is 100.39 times less risky than Green. It trades about 0.05 of its potential returns per unit of risk. Green And Hill is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Green And Hill on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Green And Hill or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.05% |
| Values | Daily Returns |
Consol Energy vs. Green And Hill
Performance |
| Timeline |
| Consol Energy |
| Green And Hill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Consol Energy and Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Green
The main advantage of trading using opposite Consol Energy and Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Green 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 Green will offset losses from the drop in Green'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 |
| Green vs. Lindblad Expeditions Holdings | Green vs. Mesa Air Group | Green vs. National CineMedia | Green vs. WiMi Hologram Cloud |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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