Correlation Between Remgro and Copper 360
Can any of the company-specific risk be diversified away by investing in both Remgro and Copper 360 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 Remgro and Copper 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remgro and Copper 360, you can compare the effects of market volatilities on Remgro and Copper 360 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 Remgro with a short position of Copper 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remgro and Copper 360.
Diversification Opportunities for Remgro and Copper 360
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Remgro and Copper is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Remgro and Copper 360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper 360 and Remgro 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 Remgro are associated (or correlated) with Copper 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper 360 has no effect on the direction of Remgro i.e., Remgro and Copper 360 go up and down completely randomly.
Pair Corralation between Remgro and Copper 360
Assuming the 90 days trading horizon Remgro is expected to generate 0.38 times more return on investment than Copper 360. However, Remgro is 2.65 times less risky than Copper 360. It trades about -0.12 of its potential returns per unit of risk. Copper 360 is currently generating about -0.18 per unit of risk. If you would invest 1,532,025 in Remgro on August 31, 2024 and sell it today you would lose (36,325) from holding Remgro or give up 2.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Remgro vs. Copper 360
Performance |
| Timeline |
| Remgro |
| Copper 360 |
Remgro and Copper 360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remgro and Copper 360
The main advantage of trading using opposite Remgro and Copper 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remgro position performs unexpectedly, Copper 360 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 Copper 360 will offset losses from the drop in Copper 360's long position.| Remgro vs. Copper 360 | Remgro vs. Zeder Investments | Remgro vs. Trematon Capital Investments | Remgro vs. Advtech |
| Copper 360 vs. HomeChoice Investments | Copper 360 vs. Trematon Capital Investments | Copper 360 vs. We Buy Cars | Copper 360 vs. Deneb 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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