Correlation Between Warrior Met and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Warrior Met 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 Warrior Met and Coronado Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Warrior Met Coal and Coronado Global Resources, you can compare the effects of market volatilities on Warrior Met 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 Warrior Met with a short position of Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warrior Met and Coronado Global.
Diversification Opportunities for Warrior Met and Coronado Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Warrior and Coronado is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Warrior Met Coal 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 Warrior Met 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 Warrior Met Coal 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 Warrior Met i.e., Warrior Met and Coronado Global go up and down completely randomly.
Pair Corralation between Warrior Met and Coronado Global
Considering the 90-day investment horizon Warrior Met Coal is expected to generate 0.73 times more return on investment than Coronado Global. However, Warrior Met Coal is 1.37 times less risky than Coronado Global. It trades about 0.0 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.07 per unit of risk. If you would invest 5,903 in Warrior Met Coal on November 3, 2024 and sell it today you would lose (626.00) from holding Warrior Met Coal or give up 10.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Warrior Met Coal vs. Coronado Global Resources
Performance |
| Timeline |
| Warrior Met Coal |
| Coronado Global Resources |
Warrior Met and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Warrior Met and Coronado Global
The main advantage of trading using opposite Warrior Met and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Warrior Met 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.| Warrior Met vs. SunCoke Energy | Warrior Met vs. Alpha Metallurgical Resources | Warrior Met vs. American Resources Corp | Warrior Met vs. Ramaco Resources |
| Coronado Global vs. Colonial Coal International | Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Warrior Met Coal | Coronado Global vs. Ramaco 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |