Correlation Between Cooper Metals and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both Cooper Metals and Aurelia Metals 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 Aurelia Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Metals and Aurelia Metals, you can compare the effects of market volatilities on Cooper Metals and Aurelia Metals 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 Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Metals and Aurelia Metals.
Diversification Opportunities for Cooper Metals and Aurelia Metals
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cooper and Aurelia is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Metals and Aurelia Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals 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 Aurelia Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelia Metals has no effect on the direction of Cooper Metals i.e., Cooper Metals and Aurelia Metals go up and down completely randomly.
Pair Corralation between Cooper Metals and Aurelia Metals
Assuming the 90 days trading horizon Cooper Metals is expected to under-perform the Aurelia Metals. But the stock apears to be less risky and, when comparing its historical volatility, Cooper Metals is 1.16 times less risky than Aurelia Metals. The stock trades about -0.05 of its potential returns per unit of risk. The Aurelia Metals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Aurelia Metals on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Aurelia Metals or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Metals vs. Aurelia Metals
Performance |
| Timeline |
| Cooper Metals |
| Aurelia Metals |
Cooper Metals and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Metals and Aurelia Metals
The main advantage of trading using opposite Cooper Metals and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Metals position performs unexpectedly, Aurelia Metals 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 Aurelia Metals will offset losses from the drop in Aurelia Metals' long position.| Cooper Metals vs. TPG Telecom | Cooper Metals vs. ACDC Metals | Cooper Metals vs. Lendlease Group | Cooper Metals vs. Hutchison Telecommunications |
| Aurelia Metals vs. Health and Plant | Aurelia Metals vs. BTC Health Limited | Aurelia Metals vs. Fisher Paykel Healthcare | Aurelia Metals vs. Sonic Healthcare |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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