Correlation Between Flagship Investments and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Flagship Investments and Coronado Global 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 Flagship Investments and Coronado Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagship Investments and Coronado Global Resources, you can compare the effects of market volatilities on Flagship Investments and Coronado Global 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 Flagship Investments with a short position of Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagship Investments and Coronado Global.
Diversification Opportunities for Flagship Investments and Coronado Global
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flagship and Coronado is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Flagship Investments and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources and Flagship Investments 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 Flagship Investments are associated (or correlated) with Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Flagship Investments i.e., Flagship Investments and Coronado Global go up and down completely randomly.
Pair Corralation between Flagship Investments and Coronado Global
Assuming the 90 days trading horizon Flagship Investments is expected to generate 0.47 times more return on investment than Coronado Global. However, Flagship Investments is 2.11 times less risky than Coronado Global. It trades about 0.1 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.19 per unit of risk. If you would invest 200.00 in Flagship Investments on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Flagship Investments or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Flagship Investments vs. Coronado Global Resources
Performance |
| Timeline |
| Flagship Investments |
| Coronado Global Resources |
Flagship Investments and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagship Investments and Coronado Global
The main advantage of trading using opposite Flagship Investments and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagship Investments position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Flagship Investments vs. Advanced Braking Technology | Flagship Investments vs. Neurotech International | Flagship Investments vs. Lendlease Group | Flagship Investments vs. Energy Technologies Limited |
| Coronado Global vs. Clime Investment Management | Coronado Global vs. Flagship Investments | Coronado Global vs. BKI Investment | Coronado Global vs. Alternative Investment Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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