Correlation Between Saferoads Holdings and Coronado Global

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

By analyzing existing cross correlation between Saferoads Holdings and Coronado Global Resources, you can compare the effects of market volatilities on Saferoads Holdings and Coronado Global 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 Saferoads Holdings with a short position of Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saferoads Holdings and Coronado Global.

Diversification Opportunities for Saferoads Holdings and Coronado Global

0.0

Correlation Coefficient

Saferoads Holdings  Coronado Global

Pay attention - limited upside

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

Pair Corralation between Saferoads Holdings and Coronado Global

Assuming the 90 days trading horizon Saferoads Holdings is expected to generate 0.81 times more return on investment than Coronado Global. However, Saferoads Holdings is 1.24 times less risky than Coronado Global. It trades about -0.1 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.1 per unit of risk. If you would invest  8.00  in Saferoads Holdings on October 24, 2024 and sell it today you would lose (3.90) from holding Saferoads Holdings or give up 48.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Saferoads Holdings  vs.  Coronado Global Resources

Saferoads Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saferoads Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Saferoads Holdings is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Coronado Global Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coronado Global Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Saferoads Holdings and Coronado Global

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

The idea behind Saferoads Holdings and Coronado Global Resources 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.