Correlation Between Exxaro Resources and Warrior Met
Can any of the company-specific risk be diversified away by investing in both Exxaro Resources and Warrior Met 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 Exxaro Resources and Warrior Met into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxaro Resources Limited and Warrior Met Coal, you can compare the effects of market volatilities on Exxaro Resources and Warrior Met 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 Exxaro Resources with a short position of Warrior Met. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxaro Resources and Warrior Met.
Diversification Opportunities for Exxaro Resources and Warrior Met
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exxaro and Warrior is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exxaro Resources Limited and Warrior Met Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warrior Met Coal and Exxaro Resources 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 Exxaro Resources Limited are associated (or correlated) with Warrior Met. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warrior Met Coal has no effect on the direction of Exxaro Resources i.e., Exxaro Resources and Warrior Met go up and down completely randomly.
Pair Corralation between Exxaro Resources and Warrior Met
If you would invest 5,610 in Warrior Met Coal on August 25, 2025 and sell it today you would earn a total of 1,897 from holding Warrior Met Coal or generate 33.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Exxaro Resources Limited vs. Warrior Met Coal
Performance |
| Timeline |
| Exxaro Resources |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Warrior Met Coal |
Exxaro Resources and Warrior Met Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxaro Resources and Warrior Met
The main advantage of trading using opposite Exxaro Resources and Warrior Met positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxaro Resources position performs unexpectedly, Warrior Met 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 Warrior Met will offset losses from the drop in Warrior Met's long position.| Exxaro Resources vs. Yancoal Australia | Exxaro Resources vs. China Coal Energy | Exxaro Resources vs. China Coal Energy | Exxaro Resources vs. Bukit Asam Tbk |
| Warrior Met vs. Peabody Energy Corp | Warrior Met vs. Alliance Resource Partners | Warrior Met vs. Core Natural Resources, | Warrior Met vs. Solaris Energy Infrastructure, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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