Correlation Between Coronado Global and Saferoads Holdings
Can any of the company-specific risk be diversified away by investing in both Coronado Global and Saferoads Holdings 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 Saferoads Holdings 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 Saferoads Holdings, you can compare the effects of market volatilities on Coronado Global and Saferoads Holdings 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 Saferoads Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronado Global and Saferoads Holdings.
Diversification Opportunities for Coronado Global and Saferoads Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coronado and Saferoads is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coronado Global Resources and Saferoads Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saferoads Holdings 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 Saferoads Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saferoads Holdings has no effect on the direction of Coronado Global i.e., Coronado Global and Saferoads Holdings go up and down completely randomly.
Pair Corralation between Coronado Global and Saferoads Holdings
Assuming the 90 days trading horizon Coronado Global Resources is expected to generate 1.2 times more return on investment than Saferoads Holdings. However, Coronado Global is 1.2 times more volatile than Saferoads Holdings. It trades about -0.07 of its potential returns per unit of risk. Saferoads Holdings is currently generating about -0.11 per unit of risk. If you would invest 176.00 in Coronado Global Resources on September 2, 2024 and sell it today you would lose (83.00) from holding Coronado Global Resources or give up 47.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronado Global Resources vs. Saferoads Holdings
Performance |
| Timeline |
| Coronado Global Resources |
| Saferoads Holdings |
Coronado Global and Saferoads Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronado Global and Saferoads Holdings
The main advantage of trading using opposite Coronado Global and Saferoads Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronado Global position performs unexpectedly, Saferoads Holdings 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 Saferoads Holdings will offset losses from the drop in Saferoads Holdings' long position.| Coronado Global vs. Charter Hall Education | Coronado Global vs. Global Health | Coronado Global vs. Black Rock Mining | Coronado Global vs. Epsilon Healthcare |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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