Correlation Between Consol Energy and Getty Copper
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Getty Copper 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 Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Getty Copper, you can compare the effects of market volatilities on Consol Energy and Getty Copper 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 Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Getty Copper.
Diversification Opportunities for Consol Energy and Getty Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consol and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper 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 Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of Consol Energy i.e., Consol Energy and Getty Copper go up and down completely randomly.
Pair Corralation between Consol Energy and Getty Copper
Given the investment horizon of 90 days Consol Energy is expected to generate 2.43 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Consol Energy is 2.69 times less risky than Getty Copper. It trades about 0.06 of its potential returns per unit of risk. Getty Copper is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.34 in Getty Copper on November 2, 2024 and sell it today you would earn a total of 3.54 from holding Getty Copper or generate 264.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Consol Energy vs. Getty Copper
Performance |
| Timeline |
| Consol Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Getty Copper |
Consol Energy and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Getty Copper
The main advantage of trading using opposite Consol Energy and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper'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 |
| Getty Copper vs. OM Holdings Limited | Getty Copper vs. Cobalt Blue Holdings | Getty Copper vs. Metals X Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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