Correlation Between China Clean and Getty Copper
Can any of the company-specific risk be diversified away by investing in both China Clean and Getty Copper 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 China Clean and Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Getty Copper, you can compare the effects of market volatilities on China Clean and Getty Copper 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 China Clean with a short position of Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Getty Copper.
Diversification Opportunities for China Clean and Getty Copper
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Getty is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper and China Clean 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 China Clean Energy are associated (or correlated) with Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of China Clean i.e., China Clean and Getty Copper go up and down completely randomly.
Pair Corralation between China Clean and Getty Copper
If you would invest 1.11 in Getty Copper on September 4, 2024 and sell it today you would earn a total of 3.77 from holding Getty Copper or generate 339.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Clean Energy vs. Getty Copper
Performance |
| Timeline |
| China Clean Energy |
| Getty Copper |
China Clean and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Getty Copper
The main advantage of trading using opposite China Clean and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper's long position.| China Clean vs. Meiwu Technology Co | China Clean vs. The Gap, | China Clean vs. Transocean | China Clean vs. Precision Drilling |
| Getty Copper vs. OM Holdings Limited | Getty Copper vs. Cobalt Blue Holdings | Getty Copper vs. Metals X Limited |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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