Correlation Between Cooper Metals and Alternative Investment
Can any of the company-specific risk be diversified away by investing in both Cooper Metals and Alternative Investment 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 Cooper Metals and Alternative Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Metals and Alternative Investment Trust, you can compare the effects of market volatilities on Cooper Metals and Alternative Investment 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 Cooper Metals with a short position of Alternative Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Metals and Alternative Investment.
Diversification Opportunities for Cooper Metals and Alternative Investment
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cooper and Alternative is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Metals and Alternative Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Investment and Cooper Metals 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 Cooper Metals are associated (or correlated) with Alternative Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Investment has no effect on the direction of Cooper Metals i.e., Cooper Metals and Alternative Investment go up and down completely randomly.
Pair Corralation between Cooper Metals and Alternative Investment
Assuming the 90 days trading horizon Cooper Metals is expected to under-perform the Alternative Investment. In addition to that, Cooper Metals is 24.36 times more volatile than Alternative Investment Trust. It trades about -0.06 of its total potential returns per unit of risk. Alternative Investment Trust is currently generating about -0.21 per unit of volatility. If you would invest 145.00 in Alternative Investment Trust on September 1, 2024 and sell it today you would lose (1.00) from holding Alternative Investment Trust or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cooper Metals vs. Alternative Investment Trust
Performance |
| Timeline |
| Cooper Metals |
| Alternative Investment |
Cooper Metals and Alternative Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Metals and Alternative Investment
The main advantage of trading using opposite Cooper Metals and Alternative Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Metals position performs unexpectedly, Alternative Investment 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 Alternative Investment will offset losses from the drop in Alternative Investment's long position.| Cooper Metals vs. Ironbark Capital | Cooper Metals vs. BTC Health Limited | Cooper Metals vs. Mount Gibson Iron | Cooper Metals vs. Aristocrat Leisure |
| Alternative Investment vs. WA1 Resources | Alternative Investment vs. Predictive Discovery | Alternative Investment vs. Cooper Metals | Alternative Investment vs. OD6 Metals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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