Correlation Between Coronado Global and Mongolian Mining
Can any of the company-specific risk be diversified away by investing in both Coronado Global and Mongolian Mining 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 Mongolian Mining 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 Mongolian Mining, you can compare the effects of market volatilities on Coronado Global and Mongolian Mining 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 Mongolian Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronado Global and Mongolian Mining.
Diversification Opportunities for Coronado Global and Mongolian Mining
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coronado and Mongolian is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Coronado Global Resources and Mongolian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mongolian Mining 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 Mongolian Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mongolian Mining has no effect on the direction of Coronado Global i.e., Coronado Global and Mongolian Mining go up and down completely randomly.
Pair Corralation between Coronado Global and Mongolian Mining
Assuming the 90 days horizon Coronado Global Resources is expected to under-perform the Mongolian Mining. But the pink sheet apears to be less risky and, when comparing its historical volatility, Coronado Global Resources is 1.24 times less risky than Mongolian Mining. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Mongolian Mining is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Mongolian Mining on August 27, 2024 and sell it today you would lose (79.00) from holding Mongolian Mining or give up 44.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronado Global Resources vs. Mongolian Mining
Performance |
| Timeline |
| Coronado Global Resources |
| Mongolian Mining |
Coronado Global and Mongolian Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronado Global and Mongolian Mining
The main advantage of trading using opposite Coronado Global and Mongolian Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronado Global position performs unexpectedly, Mongolian Mining 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 Mongolian Mining will offset losses from the drop in Mongolian Mining's long position.| Coronado Global vs. Corsa Coal Corp | Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Arch Resources | Coronado Global vs. Astera Labs, Common |
| Mongolian Mining vs. Corsa Coal Corp | Mongolian Mining vs. Alpha Metallurgical Resources | Mongolian Mining vs. Arch Resources | Mongolian Mining vs. Astera Labs, Common |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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