Correlation Between Northann Corp and Core Natural

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

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

Diversification Opportunities for Northann Corp and Core Natural

-0.8

Correlation Coefficient

Northann Corp  Core Natural

Pay attention - limited upside

The 3 months correlation between Northann and Core is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Northann Corp 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 Northann Corp 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 Northann Corp 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 Northann Corp i.e., Northann Corp and Core Natural go up and down completely randomly.

Pair Corralation between Northann Corp and Core Natural

Considering the 90-day investment horizon Northann Corp is expected to under-perform the Core Natural. In addition to that, Northann Corp is 5.67 times more volatile than Core Natural Resources,. It trades about -0.29 of its total potential returns per unit of risk. Core Natural Resources, is currently generating about 0.02 per unit of volatility. If you would invest  8,280  in Core Natural Resources, on July 28, 2025 and sell it today you would earn a total of  26.00  from holding Core Natural Resources, or generate 0.31% return on investment over 90 days.

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

Northann Corp  vs.  Core Natural Resources,

Northann Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Northann Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Core Natural Resources,

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Core Natural Resources, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Core Natural may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Northann Corp and Core Natural

The main advantage of trading using opposite Northann Corp and Core Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northann Corp 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 Northann Corp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.