Correlation Between Frontier Energy and Consol Energy
Can any of the company-specific risk be diversified away by investing in both Frontier Energy and Consol Energy 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 Frontier Energy and Consol Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frontier Energy Corp and Consol Energy, you can compare the effects of market volatilities on Frontier Energy and Consol Energy 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 Frontier Energy with a short position of Consol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frontier Energy and Consol Energy.
Diversification Opportunities for Frontier Energy and Consol Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Frontier and Consol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Frontier Energy Corp and Consol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consol Energy and Frontier 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 Frontier Energy Corp are associated (or correlated) with Consol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consol Energy has no effect on the direction of Frontier Energy i.e., Frontier Energy and Consol Energy go up and down completely randomly.
Pair Corralation between Frontier Energy and Consol Energy
If you would invest 10,612 in Consol Energy on August 24, 2024 and sell it today you would earn a total of 2,652 from holding Consol Energy or generate 24.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Frontier Energy Corp vs. Consol Energy
Performance |
| Timeline |
| Frontier Energy Corp |
| Consol Energy |
Frontier Energy and Consol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frontier Energy and Consol Energy
The main advantage of trading using opposite Frontier Energy and Consol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontier Energy position performs unexpectedly, Consol Energy 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 Consol Energy will offset losses from the drop in Consol Energy's long position.| Frontier Energy vs. Consol Energy | Frontier Energy vs. Artisan Partners Asset | Frontier Energy vs. Barings BDC | Frontier Energy vs. Mill City Ventures |
| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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