Correlation Between Core Natural and Emeren

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

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

Diversification Opportunities for Core Natural and Emeren

0.03

Correlation Coefficient

Core Natural  Emeren

Significant diversification

The 3 months correlation between Core and Emeren is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Core Natural Resources, and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group and Core Natural 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 Core Natural Resources, are associated (or correlated) with Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Core Natural i.e., Core Natural and Emeren go up and down completely randomly.

Pair Corralation between Core Natural and Emeren

Considering the 90-day investment horizon Core Natural is expected to generate 3.49 times less return on investment than Emeren. In addition to that, Core Natural is 1.17 times more volatile than Emeren Group. It trades about 0.05 of its total potential returns per unit of risk. Emeren Group is currently generating about 0.21 per unit of volatility. If you would invest  131.00  in Emeren Group on May 1, 2025 and sell it today you would earn a total of  60.00  from holding Emeren Group or generate 45.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Core Natural Resources,  vs.  Emeren Group

Core Natural Resources,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Core Natural Resources, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Core Natural may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Emeren Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Emeren Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Emeren disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Core Natural and Emeren

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

The idea behind Core Natural Resources, and Emeren Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.