Correlation Between Getty Copper and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Getty Copper and Maiden Holdings 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 Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Maiden Holdings, you can compare the effects of market volatilities on Getty Copper and Maiden Holdings 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 Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Maiden Holdings.
Diversification Opportunities for Getty Copper and Maiden Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Maiden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings 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 Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Getty Copper i.e., Getty Copper and Maiden Holdings go up and down completely randomly.
Pair Corralation between Getty Copper and Maiden Holdings
Assuming the 90 days horizon Getty Copper is expected to generate 2.82 times more return on investment than Maiden Holdings. However, Getty Copper is 2.82 times more volatile than Maiden Holdings. It trades about 0.04 of its potential returns per unit of risk. Maiden Holdings is currently generating about 0.02 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 | 97.98% |
| Values | Daily Returns |
Getty Copper vs. Maiden Holdings
Performance |
| Timeline |
| Getty Copper |
| Maiden Holdings |
Getty Copper and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Maiden Holdings
The main advantage of trading using opposite Getty Copper and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper position performs unexpectedly, Maiden Holdings 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 Maiden Holdings will offset losses from the drop in Maiden Holdings' long position.| Getty Copper vs. Qubec Nickel Corp | Getty Copper vs. IGO Limited | Getty Copper vs. Focus Graphite | Getty Copper vs. Mineral Res |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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