Correlation Between Getty Copper and Blue Thunder
Can any of the company-specific risk be diversified away by investing in both Getty Copper and Blue Thunder 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 Getty Copper and Blue Thunder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Blue Thunder Mining, you can compare the effects of market volatilities on Getty Copper and Blue Thunder 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 Getty Copper with a short position of Blue Thunder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Blue Thunder.
Diversification Opportunities for Getty Copper and Blue Thunder
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Getty and Blue is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Blue Thunder Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Thunder Mining and Getty Copper 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 Getty Copper are associated (or correlated) with Blue Thunder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Thunder Mining has no effect on the direction of Getty Copper i.e., Getty Copper and Blue Thunder go up and down completely randomly.
Pair Corralation between Getty Copper and Blue Thunder
Assuming the 90 days horizon Getty Copper is expected to generate 4.24 times more return on investment than Blue Thunder. However, Getty Copper is 4.24 times more volatile than Blue Thunder Mining. It trades about 0.11 of its potential returns per unit of risk. Blue Thunder Mining is currently generating about 0.02 per unit of risk. If you would invest 3.00 in Getty Copper on December 4, 2024 and sell it today you would earn a total of 0.50 from holding Getty Copper or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Copper vs. Blue Thunder Mining
Performance |
| Timeline |
| Getty Copper |
| Blue Thunder Mining |
Getty Copper and Blue Thunder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Blue Thunder
The main advantage of trading using opposite Getty Copper and Blue Thunder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper position performs unexpectedly, Blue Thunder 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 Blue Thunder will offset losses from the drop in Blue Thunder's long position.| Getty Copper vs. CVS HEALTH CDR | Getty Copper vs. Cogeco Communications | Getty Copper vs. Data Communications Management | Getty Copper vs. DRI Healthcare Trust |
| Blue Thunder vs. Globex Mining Enterprises | Blue Thunder vs. Endeavour Silver Corp | Blue Thunder vs. Nicola Mining | Blue Thunder vs. CVS HEALTH CDR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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