Correlation Between CHARTER and Consol Energy
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By analyzing existing cross correlation between CHARTER MUNICATIONS OPERATING and Consol Energy, you can compare the effects of market volatilities on CHARTER 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 CHARTER with a short position of Consol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHARTER and Consol Energy.
Diversification Opportunities for CHARTER and Consol Energy
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHARTER and Consol is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CHARTER MUNICATIONS OPERATING and Consol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consol Energy and CHARTER 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 CHARTER MUNICATIONS OPERATING 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 CHARTER i.e., CHARTER and Consol Energy go up and down completely randomly.
Pair Corralation between CHARTER and Consol Energy
Assuming the 90 days trading horizon CHARTER is expected to generate 9.02 times less return on investment than Consol Energy. But when comparing it to its historical volatility, CHARTER MUNICATIONS OPERATING is 2.16 times less risky than Consol Energy. It trades about 0.07 of its potential returns per unit of risk. Consol Energy is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 10,909 in Consol Energy on September 2, 2024 and sell it today you would earn a total of 2,161 from holding Consol Energy or generate 19.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CHARTER MUNICATIONS OPERATING vs. Consol Energy
Performance |
| Timeline |
| CHARTER MUNICATIONS |
| Consol Energy |
CHARTER and Consol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHARTER and Consol Energy
The main advantage of trading using opposite CHARTER and Consol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHARTER 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.| CHARTER vs. AEP TEX INC | CHARTER vs. US BANK NATIONAL | CHARTER vs. Bank of America | CHARTER vs. GE Aerospace |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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