Correlation Between Infrared Cameras and Core Natural

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

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

Diversification Opportunities for Infrared Cameras and Core Natural

-0.13

Correlation Coefficient

Infrared Cameras  Core Natural

Good diversification

The 3 months correlation between Infrared and Core is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Infrared Cameras Holdings and Core Natural Resources, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Natural Resources, and Infrared Cameras 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 Infrared Cameras Holdings are associated (or correlated) with Core Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Natural Resources, has no effect on the direction of Infrared Cameras i.e., Infrared Cameras and Core Natural go up and down completely randomly.

Pair Corralation between Infrared Cameras and Core Natural

Given the investment horizon of 90 days Infrared Cameras Holdings is expected to generate 5.06 times more return on investment than Core Natural. However, Infrared Cameras is 5.06 times more volatile than Core Natural Resources,. It trades about 0.07 of its potential returns per unit of risk. Core Natural Resources, is currently generating about 0.1 per unit of risk. If you would invest  69.00  in Infrared Cameras Holdings on August 20, 2025 and sell it today you would earn a total of  5.00  from holding Infrared Cameras Holdings or generate 7.25% return on investment over 90 days.

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

Infrared Cameras Holdings  vs.  Core Natural Resources,

Infrared Cameras Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Infrared Cameras Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Infrared Cameras demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Core Natural Resources,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Core Natural Resources, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Core Natural reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infrared Cameras and Core Natural

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

The idea behind Infrared Cameras Holdings and Core Natural 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.