Correlation Between Consol Energy and Rumble
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Rumble 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 Rumble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Rumble Inc, you can compare the effects of market volatilities on Consol Energy and Rumble 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 Rumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Rumble.
Diversification Opportunities for Consol Energy and Rumble
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Consol and Rumble is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Consol Energy i.e., Consol Energy and Rumble go up and down completely randomly.
Pair Corralation between Consol Energy and Rumble
Given the investment horizon of 90 days Consol Energy is expected to generate 0.56 times more return on investment than Rumble. However, Consol Energy is 1.78 times less risky than Rumble. It trades about 0.06 of its potential returns per unit of risk. Rumble Inc is currently generating about 0.02 per unit of risk. If you would invest 6,851 in Consol Energy on September 3, 2024 and sell it today you would earn a total of 6,219 from holding Consol Energy or generate 90.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Rumble Inc
Performance |
| Timeline |
| Consol Energy |
| Rumble Inc |
Consol Energy and Rumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Rumble
The main advantage of trading using opposite Consol Energy and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble'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 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |