Correlation Between Consol Energy and Greenvale Mining

Can any of the company-specific risk be diversified away by investing in both Consol Energy and Greenvale Mining 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 Consol Energy and Greenvale Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Consol Energy and Greenvale Mining Limited, you can compare the effects of market volatilities on Consol Energy and Greenvale Mining 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 Consol Energy with a short position of Greenvale Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Greenvale Mining.

Diversification Opportunities for Consol Energy and Greenvale Mining

0.0

Correlation Coefficient

Consol Energy  Greenvale Mining

Pay attention - limited upside

The 3 months correlation between Consol and Greenvale is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Greenvale Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenvale Mining and Consol Energy 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 Consol Energy are associated (or correlated) with Greenvale Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenvale Mining has no effect on the direction of Consol Energy i.e., Consol Energy and Greenvale Mining go up and down completely randomly.

Pair Corralation between Consol Energy and Greenvale Mining

If you would invest  5.00  in Greenvale Mining Limited on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Greenvale Mining Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	83.33%
Values	Daily Returns

Consol Energy  vs.  Greenvale Mining Limited

Consol Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Consol Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Consol Energy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Greenvale Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenvale Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Greenvale Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Consol Energy and Greenvale Mining

The main advantage of trading using opposite Consol Energy and Greenvale Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Greenvale Mining 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 Greenvale Mining will offset losses from the drop in Greenvale Mining's long position.

The idea behind Consol Energy and Greenvale Mining Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.