Correlation Between CEIX Old and STOAU

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

By analyzing existing cross correlation between CEIX Old and STOAU 3649 29 APR 31, you can compare the effects of market volatilities on CEIX Old and STOAU 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 CEIX Old with a short position of STOAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEIX Old and STOAU.

Diversification Opportunities for CEIX Old and STOAU

0.0

Correlation Coefficient

CEIX Old  STOAU

Pay attention - limited upside

The 3 months correlation between CEIX and STOAU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CEIX Old and STOAU 3649 29 APR 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STOAU 3649 29 and CEIX Old 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 CEIX Old are associated (or correlated) with STOAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STOAU 3649 29 has no effect on the direction of CEIX Old i.e., CEIX Old and STOAU go up and down completely randomly.

Pair Corralation between CEIX Old and STOAU

If you would invest (100.00) in CEIX Old on December 5, 2024 and sell it today you would earn a total of  100.00  from holding CEIX Old 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

CEIX Old  vs.  STOAU 3649 29 APR 31

CEIX Old

Risk-Adjusted Performance

Very Weak

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

STOAU 3649 29

Risk-Adjusted Performance

Very Weak

Over the last 90 days STOAU 3649 29 APR 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, STOAU is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CEIX Old and STOAU

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

The idea behind CEIX Old and STOAU 3649 29 APR 31 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.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.