Correlation Between Garmin and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Garmin and Marimaca Copper 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 Garmin and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garmin and Marimaca Copper Corp, you can compare the effects of market volatilities on Garmin and Marimaca Copper 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 Garmin with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garmin and Marimaca Copper.
Diversification Opportunities for Garmin and Marimaca Copper
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Garmin and Marimaca is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Garmin and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Garmin 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 Garmin are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Garmin i.e., Garmin and Marimaca Copper go up and down completely randomly.
Pair Corralation between Garmin and Marimaca Copper
Given the investment horizon of 90 days Garmin is expected to generate 0.54 times more return on investment than Marimaca Copper. However, Garmin is 1.84 times less risky than Marimaca Copper. It trades about 0.1 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.05 per unit of risk. If you would invest 9,350 in Garmin on November 2, 2024 and sell it today you would earn a total of 12,338 from holding Garmin or generate 131.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garmin vs. Marimaca Copper Corp
Performance |
| Timeline |
| Garmin |
| Marimaca Copper Corp |
Garmin and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garmin and Marimaca Copper
The main advantage of trading using opposite Garmin and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garmin position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Garmin vs. Vontier Corp | Garmin vs. Teledyne Technologies Incorporated | Garmin vs. ESCO Technologies | Garmin vs. MKS Instruments |
| Marimaca Copper vs. Freeport McMoran Copper Gold | Marimaca Copper vs. Antofagasta PLC | Marimaca Copper vs. First Quantum Minerals | Marimaca Copper vs. Jiangxi Copper |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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