Correlation Between Getty Copper and Huabao International
Can any of the company-specific risk be diversified away by investing in both Getty Copper and Huabao International 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 Huabao International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Huabao International Holdings, you can compare the effects of market volatilities on Getty Copper and Huabao International 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 Huabao International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Huabao International.
Diversification Opportunities for Getty Copper and Huabao International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Huabao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Huabao International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huabao International 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 Huabao International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huabao International has no effect on the direction of Getty Copper i.e., Getty Copper and Huabao International go up and down completely randomly.
Pair Corralation between Getty Copper and Huabao International
Assuming the 90 days horizon Getty Copper is expected to generate 21.47 times more return on investment than Huabao International. However, Getty Copper is 21.47 times more volatile than Huabao International Holdings. It trades about 0.09 of its potential returns per unit of risk. Huabao International Holdings is currently generating about -0.06 per unit of risk. If you would invest 1.11 in Getty Copper on September 14, 2024 and sell it today you would earn a total of 3.77 from holding Getty Copper or generate 339.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 48.33% |
| Values | Daily Returns |
Getty Copper vs. Huabao International Holdings
Performance |
| Timeline |
| Getty Copper |
| Huabao International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Getty Copper and Huabao International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Huabao International
The main advantage of trading using opposite Getty Copper and Huabao International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper position performs unexpectedly, Huabao International 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 Huabao International will offset losses from the drop in Huabao International's long position.| Getty Copper vs. Qubec Nickel Corp | Getty Copper vs. IGO Limited | Getty Copper vs. Focus Graphite | Getty Copper vs. Mineral Res |
| Huabao International vs. Royalty Management Holding | Huabao International vs. PennantPark Floating Rate | Huabao International vs. Eastern Co | Huabao International vs. GAMCO Global Gold |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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