Correlation Between Cooper Metals and Argo Investments
Can any of the company-specific risk be diversified away by investing in both Cooper Metals and Argo Investments 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 Argo Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Metals and Argo Investments, you can compare the effects of market volatilities on Cooper Metals and Argo Investments 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 Argo Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Metals and Argo Investments.
Diversification Opportunities for Cooper Metals and Argo Investments
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cooper and Argo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Metals and Argo Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Investments 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 Argo Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Investments has no effect on the direction of Cooper Metals i.e., Cooper Metals and Argo Investments go up and down completely randomly.
Pair Corralation between Cooper Metals and Argo Investments
Assuming the 90 days trading horizon Cooper Metals is expected to under-perform the Argo Investments. In addition to that, Cooper Metals is 13.79 times more volatile than Argo Investments. It trades about 0.0 of its total potential returns per unit of risk. Argo Investments is currently generating about 0.03 per unit of volatility. If you would invest 841.00 in Argo Investments on November 30, 2024 and sell it today you would earn a total of 62.00 from holding Argo Investments or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Metals vs. Argo Investments
Performance |
| Timeline |
| Cooper Metals |
| Argo Investments |
Cooper Metals and Argo Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Metals and Argo Investments
The main advantage of trading using opposite Cooper Metals and Argo Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Metals position performs unexpectedly, Argo Investments 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 Argo Investments will offset losses from the drop in Argo Investments' long position.| Cooper Metals vs. Lendlease Group | Cooper Metals vs. Beston Global Food | Cooper Metals vs. Phoslock Environmental Technologies | Cooper Metals vs. COAST ENTERTAINMENT HOLDINGS |
| Argo Investments vs. Flagship Investments | Argo Investments vs. Carnegie Clean Energy | Argo Investments vs. Regal Investment | Argo Investments vs. Pinnacle Investment Management |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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