Correlation Between Consol Energy and HARLEY
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By analyzing existing cross correlation between Consol Energy and HARLEY DAVIDSON INC, you can compare the effects of market volatilities on Consol Energy and HARLEY 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 HARLEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and HARLEY.
Diversification Opportunities for Consol Energy and HARLEY
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Consol and HARLEY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and HARLEY DAVIDSON INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HARLEY DAVIDSON 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 HARLEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HARLEY DAVIDSON INC has no effect on the direction of Consol Energy i.e., Consol Energy and HARLEY go up and down completely randomly.
Pair Corralation between Consol Energy and HARLEY
Given the investment horizon of 90 days Consol Energy is expected to generate 8.21 times more return on investment than HARLEY. However, Consol Energy is 8.21 times more volatile than HARLEY DAVIDSON INC. It trades about 0.27 of its potential returns per unit of risk. HARLEY DAVIDSON INC is currently generating about -0.16 per unit of risk. If you would invest 11,070 in Consol Energy on September 1, 2024 and sell it today you would earn a total of 2,000 from holding Consol Energy or generate 18.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. HARLEY DAVIDSON INC
Performance |
| Timeline |
| Consol Energy |
| HARLEY DAVIDSON INC |
Consol Energy and HARLEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and HARLEY
The main advantage of trading using opposite Consol Energy and HARLEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, HARLEY 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 HARLEY will offset losses from the drop in HARLEY'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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