Correlation Between Computer Modelling and Getty Copper

Can any of the company-specific risk be diversified away by investing in both Computer Modelling 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 Computer Modelling and Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Computer Modelling Group and Getty Copper, you can compare the effects of market volatilities on Computer Modelling 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 Computer Modelling with a short position of Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Modelling and Getty Copper.

Diversification Opportunities for Computer Modelling and Getty Copper

0.71

Correlation Coefficient

Computer Modelling  Getty Copper

Poor diversification

The 3 months correlation between Computer and Getty is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Computer Modelling Group and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper and Computer Modelling 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 Computer Modelling Group 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 Computer Modelling i.e., Computer Modelling and Getty Copper go up and down completely randomly.

Pair Corralation between Computer Modelling and Getty Copper

Assuming the 90 days trading horizon Computer Modelling is expected to generate 3.03 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Computer Modelling Group is 3.75 times less risky than Getty Copper. It trades about 0.05 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  3.00  in Getty Copper on October 3, 2024 and sell it today you would earn a total of  0.00  from holding Getty Copper or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Computer Modelling Group  vs.  Getty Copper

Computer Modelling

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Computer Modelling Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Computer Modelling is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Getty Copper

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getty Copper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Computer Modelling and Getty Copper

The main advantage of trading using opposite Computer Modelling and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Modelling 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.

The idea behind Computer Modelling Group and Getty Copper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.