Correlation Between IGO and Getty Copper
Can any of the company-specific risk be diversified away by investing in both IGO and Getty 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 IGO and Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Getty Copper, you can compare the effects of market volatilities on IGO and Getty 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 IGO with a short position of Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Getty Copper.
Diversification Opportunities for IGO and Getty Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGO and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper and IGO 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 IGO Limited are associated (or correlated) with Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of IGO i.e., IGO and Getty Copper go up and down completely randomly.
Pair Corralation between IGO and Getty Copper
Assuming the 90 days horizon IGO Limited is expected to under-perform the Getty Copper. But the pink sheet apears to be less risky and, when comparing its historical volatility, IGO Limited is 3.72 times less risky than Getty Copper. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Getty Copper is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.11 in Getty Copper on September 3, 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 | 100.0% |
| Values | Daily Returns |
IGO Limited vs. Getty Copper
Performance |
| Timeline |
| IGO Limited |
| Getty Copper |
IGO and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Getty Copper
The main advantage of trading using opposite IGO and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Getty 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 Getty Copper will offset losses from the drop in Getty Copper's long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| Getty Copper vs. Qubec Nickel Corp | Getty Copper vs. IGO Limited | Getty Copper vs. Anson Resources Limited | Getty Copper vs. Avarone Metals |
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 Directory module to find actively traded commodities issued by global exchanges.
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