Correlation Between Coronado Global and Alpha Metallurgical
Can any of the company-specific risk be diversified away by investing in both Coronado Global and Alpha Metallurgical 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 Coronado Global and Alpha Metallurgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coronado Global Resources and Alpha Metallurgical Resources, you can compare the effects of market volatilities on Coronado Global and Alpha Metallurgical 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 Coronado Global with a short position of Alpha Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronado Global and Alpha Metallurgical.
Diversification Opportunities for Coronado Global and Alpha Metallurgical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coronado and Alpha is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Coronado Global Resources and Alpha Metallurgical Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Metallurgical and Coronado Global 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 Coronado Global Resources are associated (or correlated) with Alpha Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Metallurgical has no effect on the direction of Coronado Global i.e., Coronado Global and Alpha Metallurgical go up and down completely randomly.
Pair Corralation between Coronado Global and Alpha Metallurgical
Assuming the 90 days horizon Coronado Global Resources is expected to under-perform the Alpha Metallurgical. But the pink sheet apears to be less risky and, when comparing its historical volatility, Coronado Global Resources is 2.83 times less risky than Alpha Metallurgical. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Alpha Metallurgical Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20,165 in Alpha Metallurgical Resources on September 12, 2024 and sell it today you would earn a total of 2,653 from holding Alpha Metallurgical Resources or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Coronado Global Resources vs. Alpha Metallurgical Resources
Performance |
| Timeline |
| Coronado Global Resources |
| Alpha Metallurgical |
Coronado Global and Alpha Metallurgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronado Global and Alpha Metallurgical
The main advantage of trading using opposite Coronado Global and Alpha Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronado Global position performs unexpectedly, Alpha Metallurgical 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 Alpha Metallurgical will offset losses from the drop in Alpha Metallurgical's long position.| Coronado Global vs. Colonial Coal International | Coronado Global vs. Arch Resources | Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Warrior Met Coal |
| Alpha Metallurgical vs. Warrior Met Coal | Alpha Metallurgical vs. Ramaco Resources | Alpha Metallurgical vs. SunCoke Energy | Alpha Metallurgical vs. American Resources Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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