Correlation Between Consol Energy and 879360AD7
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By analyzing existing cross correlation between Consol Energy and TDY 225 01 APR 28, you can compare the effects of market volatilities on Consol Energy and 879360AD7 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 879360AD7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and 879360AD7.
Diversification Opportunities for Consol Energy and 879360AD7
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consol and 879360AD7 is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and TDY 225 01 APR 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDY 225 01 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 879360AD7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDY 225 01 has no effect on the direction of Consol Energy i.e., Consol Energy and 879360AD7 go up and down completely randomly.
Pair Corralation between Consol Energy and 879360AD7
Given the investment horizon of 90 days Consol Energy is expected to generate 5.75 times more return on investment than 879360AD7. However, Consol Energy is 5.75 times more volatile than TDY 225 01 APR 28. It trades about 0.1 of its potential returns per unit of risk. TDY 225 01 APR 28 is currently generating about -0.02 per unit of risk. If you would invest 9,846 in Consol Energy on September 2, 2024 and sell it today you would earn a total of 3,224 from holding Consol Energy or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Consol Energy vs. TDY 225 01 APR 28
Performance |
| Timeline |
| Consol Energy |
| TDY 225 01 |
Consol Energy and 879360AD7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and 879360AD7
The main advantage of trading using opposite Consol Energy and 879360AD7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, 879360AD7 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 879360AD7 will offset losses from the drop in 879360AD7'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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