Correlation Between Cooper Metals and Gtn
Can any of the company-specific risk be diversified away by investing in both Cooper Metals and Gtn 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 Gtn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Metals and Gtn, you can compare the effects of market volatilities on Cooper Metals and Gtn 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 Gtn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Metals and Gtn.
Diversification Opportunities for Cooper Metals and Gtn
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cooper and Gtn is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Metals and Gtn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gtn 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 Gtn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gtn has no effect on the direction of Cooper Metals i.e., Cooper Metals and Gtn go up and down completely randomly.
Pair Corralation between Cooper Metals and Gtn
Assuming the 90 days trading horizon Cooper Metals is expected to under-perform the Gtn. But the stock apears to be less risky and, when comparing its historical volatility, Cooper Metals is 1.53 times less risky than Gtn. The stock trades about -0.17 of its potential returns per unit of risk. The Gtn is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Gtn on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Gtn or generate 21.28% 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. Gtn
Performance |
| Timeline |
| Cooper Metals |
| Gtn |
Cooper Metals and Gtn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Metals and Gtn
The main advantage of trading using opposite Cooper Metals and Gtn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Metals position performs unexpectedly, Gtn 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 Gtn will offset losses from the drop in Gtn's long position.| Cooper Metals vs. Aristocrat Leisure | Cooper Metals vs. Dicker Data | Cooper Metals vs. Champion Iron | Cooper Metals vs. Data3 |
| Gtn vs. Insignia Financial | Gtn vs. Oceania Healthcare | Gtn vs. Perpetual Credit Income | Gtn vs. Capitol Health |
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.
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