Correlation Between Mullen Automotive and Corsa Coal
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and Corsa Coal 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 Mullen Automotive and Corsa Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and Corsa Coal Corp, you can compare the effects of market volatilities on Mullen Automotive and Corsa Coal 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 Mullen Automotive with a short position of Corsa Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Corsa Coal.
Diversification Opportunities for Mullen Automotive and Corsa Coal
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mullen and Corsa is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and Corsa Coal Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsa Coal Corp and Mullen Automotive 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 Mullen Automotive are associated (or correlated) with Corsa Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsa Coal Corp has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and Corsa Coal go up and down completely randomly.
Pair Corralation between Mullen Automotive and Corsa Coal
Given the investment horizon of 90 days Mullen Automotive is expected to generate 2.41 times more return on investment than Corsa Coal. However, Mullen Automotive is 2.41 times more volatile than Corsa Coal Corp. It trades about 0.14 of its potential returns per unit of risk. Corsa Coal Corp is currently generating about 0.04 per unit of risk. If you would invest 205.00 in Mullen Automotive on September 1, 2024 and sell it today you would earn a total of 64.00 from holding Mullen Automotive or generate 31.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mullen Automotive vs. Corsa Coal Corp
Performance |
| Timeline |
| Mullen Automotive |
| Corsa Coal Corp |
Mullen Automotive and Corsa Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and Corsa Coal
The main advantage of trading using opposite Mullen Automotive and Corsa Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, Corsa Coal 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 Corsa Coal will offset losses from the drop in Corsa Coal's long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| Corsa Coal vs. Alpha Metallurgical Resources | Corsa Coal vs. Arch Resources | Corsa Coal vs. Warrior Met Coal | Corsa Coal 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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