Correlation Between Summit Materials and Getty Copper
Can any of the company-specific risk be diversified away by investing in both Summit Materials 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 Summit Materials and Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and Getty Copper, you can compare the effects of market volatilities on Summit Materials 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 Summit Materials with a short position of Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Getty Copper.
Diversification Opportunities for Summit Materials and Getty Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper and Summit Materials 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 Summit Materials 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 Summit Materials i.e., Summit Materials and Getty Copper go up and down completely randomly.
Pair Corralation between Summit Materials and Getty Copper
Considering the 90-day investment horizon Summit Materials is expected to generate 2.6 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Summit Materials is 3.54 times less risky than Getty Copper. It trades about 0.06 of its potential returns per unit of risk. Getty Copper is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Getty Copper on September 2, 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 |
Summit Materials vs. Getty Copper
Performance |
| Timeline |
| Summit Materials |
| Getty Copper |
Summit Materials and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Getty Copper
The main advantage of trading using opposite Summit Materials and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials 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.| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. James Hardie Industries | Summit Materials vs. Eagle Materials |
| Getty Copper vs. ATT Inc | Getty Copper vs. Merck Company | Getty Copper vs. Walt Disney | Getty Copper vs. Caterpillar |
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.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |