Correlation Between Consol Energy and SOCGEN
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By analyzing existing cross correlation between Consol Energy and SOCGEN 7367 10 JAN 53, you can compare the effects of market volatilities on Consol Energy and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and SOCGEN.
Diversification Opportunities for Consol Energy and SOCGEN
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Consol and SOCGEN is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and SOCGEN 7367 10 JAN 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 7367 10 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 7367 10 has no effect on the direction of Consol Energy i.e., Consol Energy and SOCGEN go up and down completely randomly.
Pair Corralation between Consol Energy and SOCGEN
Given the investment horizon of 90 days Consol Energy is expected to generate 0.77 times more return on investment than SOCGEN. However, Consol Energy is 1.29 times less risky than SOCGEN. It trades about -0.24 of its potential returns per unit of risk. SOCGEN 7367 10 JAN 53 is currently generating about -0.22 per unit of risk. If you would invest 12,948 in Consol Energy on September 12, 2024 and sell it today you would lose (1,360) from holding Consol Energy or give up 10.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Consol Energy vs. SOCGEN 7367 10 JAN 53
Performance |
| Timeline |
| Consol Energy |
| SOCGEN 7367 10 |
Consol Energy and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and SOCGEN
The main advantage of trading using opposite Consol Energy and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN'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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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