Correlation Between Whitehaven Coal and Exxaro Resources
Can any of the company-specific risk be diversified away by investing in both Whitehaven Coal and Exxaro Resources 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 Exxaro Resources 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 Exxaro Resources Limited, you can compare the effects of market volatilities on Whitehaven Coal and Exxaro Resources 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 Exxaro Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitehaven Coal and Exxaro Resources.
Diversification Opportunities for Whitehaven Coal and Exxaro Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whitehaven and Exxaro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whitehaven Coal Limited and Exxaro Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxaro Resources 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 Exxaro Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxaro Resources has no effect on the direction of Whitehaven Coal i.e., Whitehaven Coal and Exxaro Resources go up and down completely randomly.
Pair Corralation between Whitehaven Coal and Exxaro Resources
If you would invest 460.00 in Whitehaven Coal Limited on August 14, 2025 and sell it today you would earn a total of 1.00 from holding Whitehaven Coal Limited or generate 0.22% 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. Exxaro Resources Limited
Performance |
| Timeline |
| Whitehaven Coal |
| Exxaro Resources |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Whitehaven Coal and Exxaro Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitehaven Coal and Exxaro Resources
The main advantage of trading using opposite Whitehaven Coal and Exxaro Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitehaven Coal position performs unexpectedly, Exxaro Resources 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 Exxaro Resources will offset losses from the drop in Exxaro Resources' long position.| Whitehaven Coal vs. New Hope | Whitehaven Coal vs. Adaro Energy Tbk | Whitehaven Coal vs. Thungela Resources Limited | Whitehaven Coal vs. Yancoal Australia |
| Exxaro Resources vs. Yancoal Australia | Exxaro Resources vs. China Coal Energy | Exxaro Resources vs. China Coal Energy | Exxaro Resources vs. Bukit Asam Tbk |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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