Correlation Between Consol Energy and CHUBB
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By analyzing existing cross correlation between Consol Energy and CHUBB P 68, you can compare the effects of market volatilities on Consol Energy and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and CHUBB.
Diversification Opportunities for Consol Energy and CHUBB
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Consol and CHUBB is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and CHUBB P 68 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 68 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 68 has no effect on the direction of Consol Energy i.e., Consol Energy and CHUBB go up and down completely randomly.
Pair Corralation between Consol Energy and CHUBB
Given the investment horizon of 90 days Consol Energy is expected to generate 2.79 times more return on investment than CHUBB. However, Consol Energy is 2.79 times more volatile than CHUBB P 68. It trades about 0.05 of its potential returns per unit of risk. CHUBB P 68 is currently generating about 0.03 per unit of risk. If you would invest 10,350 in Consol Energy on September 2, 2024 and sell it today you would earn a total of 2,720 from holding Consol Energy or generate 26.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.81% |
| Values | Daily Returns |
Consol Energy vs. CHUBB P 68
Performance |
| Timeline |
| Consol Energy |
| CHUBB P 68 |
Consol Energy and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and CHUBB
The main advantage of trading using opposite Consol Energy and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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