Correlation Between Coronado Global and Gratifii
Can any of the company-specific risk be diversified away by investing in both Coronado Global and Gratifii 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 Gratifii 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 Gratifii, you can compare the effects of market volatilities on Coronado Global and Gratifii 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 Gratifii. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronado Global and Gratifii.
Diversification Opportunities for Coronado Global and Gratifii
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coronado and Gratifii is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Coronado Global Resources and Gratifii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratifii 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 Gratifii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gratifii has no effect on the direction of Coronado Global i.e., Coronado Global and Gratifii go up and down completely randomly.
Pair Corralation between Coronado Global and Gratifii
Assuming the 90 days trading horizon Coronado Global Resources is expected to under-perform the Gratifii. But the stock apears to be less risky and, when comparing its historical volatility, Coronado Global Resources is 3.83 times less risky than Gratifii. The stock trades about -0.05 of its potential returns per unit of risk. The Gratifii is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9.58 in Gratifii on September 2, 2024 and sell it today you would earn a total of 1.42 from holding Gratifii or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronado Global Resources vs. Gratifii
Performance |
| Timeline |
| Coronado Global Resources |
| Gratifii |
Coronado Global and Gratifii Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronado Global and Gratifii
The main advantage of trading using opposite Coronado Global and Gratifii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronado Global position performs unexpectedly, Gratifii 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 Gratifii will offset losses from the drop in Gratifii's long position.| Coronado Global vs. Charter Hall Education | Coronado Global vs. Global Health | Coronado Global vs. Black Rock Mining | Coronado Global vs. Epsilon Healthcare |
| Gratifii vs. Audio Pixels Holdings | Gratifii vs. Norwest Minerals | Gratifii vs. Lindian Resources | Gratifii vs. Rumble Resources |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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