Correlation Between Consol Energy and Western Union
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Western Union 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 Western Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Western Union Co, you can compare the effects of market volatilities on Consol Energy and Western Union 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 Western Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Western Union.
Diversification Opportunities for Consol Energy and Western Union
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consol and Western is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Western Union Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Union 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 Western Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Union has no effect on the direction of Consol Energy i.e., Consol Energy and Western Union go up and down completely randomly.
Pair Corralation between Consol Energy and Western Union
Given the investment horizon of 90 days Consol Energy is expected to generate 2.41 times more return on investment than Western Union. However, Consol Energy is 2.41 times more volatile than Western Union Co. It trades about 0.31 of its potential returns per unit of risk. Western Union Co is currently generating about -0.02 per unit of risk. If you would invest 10,913 in Consol Energy on August 28, 2024 and sell it today you would earn a total of 2,420 from holding Consol Energy or generate 22.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Consol Energy vs. Western Union Co
Performance |
| Timeline |
| Consol Energy |
| Western Union |
Consol Energy and Western Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Western Union
The main advantage of trading using opposite Consol Energy and Western Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Western Union 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 Western Union will offset losses from the drop in Western Union'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 |
| Western Union vs. American Express | Western Union vs. Morningstar Unconstrained Allocation | Western Union vs. Sitka Gold Corp | Western Union vs. MSCI ACWI exAUCONSUMER |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |