Correlation Between Consol Energy and Signature Eyewear
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Signature Eyewear 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 Signature Eyewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Signature Eyewear, you can compare the effects of market volatilities on Consol Energy and Signature Eyewear 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 Signature Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Signature Eyewear.
Diversification Opportunities for Consol Energy and Signature Eyewear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consol and Signature is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Signature Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Eyewear 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 Signature Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Eyewear has no effect on the direction of Consol Energy i.e., Consol Energy and Signature Eyewear go up and down completely randomly.
Pair Corralation between Consol Energy and Signature Eyewear
If you would invest 10,742 in Consol Energy on September 5, 2024 and sell it today you would earn a total of 1,689 from holding Consol Energy or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Consol Energy vs. Signature Eyewear
Performance |
| Timeline |
| Consol Energy |
| Signature Eyewear |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Consol Energy and Signature Eyewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Signature Eyewear
The main advantage of trading using opposite Consol Energy and Signature Eyewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Signature Eyewear 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 Signature Eyewear will offset losses from the drop in Signature Eyewear'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 |
| Signature Eyewear vs. Consol Energy | Signature Eyewear vs. Griffon | Signature Eyewear vs. Summit Materials | Signature Eyewear vs. Inflection Point Acquisition |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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