Correlation Between Whitehaven Coal and Yancoal Australia
Can any of the company-specific risk be diversified away by investing in both Whitehaven Coal and Yancoal Australia 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 Whitehaven Coal and Yancoal Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitehaven Coal Limited and Yancoal Australia, you can compare the effects of market volatilities on Whitehaven Coal and Yancoal Australia 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 Whitehaven Coal with a short position of Yancoal Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitehaven Coal and Yancoal Australia.
Diversification Opportunities for Whitehaven Coal and Yancoal Australia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whitehaven and Yancoal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whitehaven Coal Limited and Yancoal Australia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yancoal Australia and Whitehaven Coal 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 Whitehaven Coal Limited are associated (or correlated) with Yancoal Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yancoal Australia has no effect on the direction of Whitehaven Coal i.e., Whitehaven Coal and Yancoal Australia go up and down completely randomly.
Pair Corralation between Whitehaven Coal and Yancoal Australia
If you would invest (100.00) in Yancoal Australia on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Yancoal Australia or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Whitehaven Coal Limited vs. Yancoal Australia
Performance |
| Timeline |
| Whitehaven Coal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yancoal Australia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Whitehaven Coal and Yancoal Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitehaven Coal and Yancoal Australia
The main advantage of trading using opposite Whitehaven Coal and Yancoal Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitehaven Coal position performs unexpectedly, Yancoal Australia 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 Yancoal Australia will offset losses from the drop in Yancoal Australia's long position.| Whitehaven Coal vs. ARDAGH METAL PACDL 0001 | Whitehaven Coal vs. Cogent Communications Holdings | Whitehaven Coal vs. POWER METALS | Whitehaven Coal vs. Jacquet Metal Service |
| Yancoal Australia vs. Sterling Construction | Yancoal Australia vs. Granite Construction | Yancoal Australia vs. Chongqing Machinery Electric | Yancoal Australia vs. North American Construction |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |