Correlation Between Cooper Metals and Greentech Metals
Can any of the company-specific risk be diversified away by investing in both Cooper Metals and Greentech 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 Greentech 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 Greentech Metals, you can compare the effects of market volatilities on Cooper Metals and Greentech 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 Greentech Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Metals and Greentech Metals.
Diversification Opportunities for Cooper Metals and Greentech Metals
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cooper and Greentech is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Metals and Greentech Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentech 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 Greentech Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentech Metals has no effect on the direction of Cooper Metals i.e., Cooper Metals and Greentech Metals go up and down completely randomly.
Pair Corralation between Cooper Metals and Greentech Metals
Assuming the 90 days trading horizon Cooper Metals is expected to generate 0.46 times more return on investment than Greentech Metals. However, Cooper Metals is 2.19 times less risky than Greentech Metals. It trades about 0.08 of its potential returns per unit of risk. Greentech Metals is currently generating about -0.18 per unit of risk. If you would invest 4.50 in Cooper Metals on September 3, 2024 and sell it today you would earn a total of 0.20 from holding Cooper Metals or generate 4.44% 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. Greentech Metals
Performance |
| Timeline |
| Cooper Metals |
| Greentech Metals |
Cooper Metals and Greentech Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Metals and Greentech Metals
The main advantage of trading using opposite Cooper Metals and Greentech Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Metals position performs unexpectedly, Greentech 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 Greentech Metals will offset losses from the drop in Greentech Metals' long position.| Cooper Metals vs. Richmond Vanadium Technology | Cooper Metals vs. Metro Mining | Cooper Metals vs. Ras Technology Holdings | Cooper Metals vs. Dug Technology |
| Greentech Metals vs. Northern Star Resources | Greentech Metals vs. Evolution Mining | Greentech Metals vs. Bluescope Steel | Greentech Metals vs. Aneka Tambang Tbk |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |