Correlation Between Getty Copper and Cincinnati Financial
Can any of the company-specific risk be diversified away by investing in both Getty Copper and Cincinnati Financial 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 Cincinnati Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Cincinnati Financial, you can compare the effects of market volatilities on Getty Copper and Cincinnati Financial 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 Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Cincinnati Financial.
Diversification Opportunities for Getty Copper and Cincinnati Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Cincinnati is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Cincinnati Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial 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 Cincinnati Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Financial has no effect on the direction of Getty Copper i.e., Getty Copper and Cincinnati Financial go up and down completely randomly.
Pair Corralation between Getty Copper and Cincinnati Financial
Assuming the 90 days horizon Getty Copper is expected to generate 4.86 times more return on investment than Cincinnati Financial. However, Getty Copper is 4.86 times more volatile than Cincinnati Financial. It trades about 0.04 of its potential returns per unit of risk. Cincinnati Financial is currently generating about 0.06 per unit of risk. If you would invest 2.30 in Getty Copper on September 12, 2024 and sell it today you would earn a total of 2.58 from holding Getty Copper or generate 112.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Getty Copper vs. Cincinnati Financial
Performance |
| Timeline |
| Getty Copper |
| Cincinnati Financial |
Getty Copper and Cincinnati Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Cincinnati Financial
The main advantage of trading using opposite Getty Copper and Cincinnati Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper position performs unexpectedly, Cincinnati Financial 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 Cincinnati Financial will offset losses from the drop in Cincinnati Financial's long position.| Getty Copper vs. Qubec Nickel Corp | Getty Copper vs. IGO Limited | Getty Copper vs. Focus Graphite | Getty Copper vs. Mineral Res |
| Cincinnati Financial vs. Aeye Inc | Cincinnati Financial vs. Ep Emerging Markets | Cincinnati Financial vs. LiCycle Holdings Corp | Cincinnati Financial vs. SEI Investments |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |