Correlation Between Copper 360 and Advtech

Can any of the company-specific risk be diversified away by investing in both Copper 360 and Advtech 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 Copper 360 and Advtech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Copper 360 and Advtech, you can compare the effects of market volatilities on Copper 360 and Advtech 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 Copper 360 with a short position of Advtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper 360 and Advtech.

Diversification Opportunities for Copper 360 and Advtech

-0.68

Correlation Coefficient

Copper 360  Advtech

Excellent diversification

The 3 months correlation between Copper and Advtech is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Copper 360 and Advtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advtech and Copper 360 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 Copper 360 are associated (or correlated) with Advtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advtech has no effect on the direction of Copper 360 i.e., Copper 360 and Advtech go up and down completely randomly.

Pair Corralation between Copper 360 and Advtech

Assuming the 90 days trading horizon Copper 360 is expected to generate 90.39 times more return on investment than Advtech. However, Copper 360 is 90.39 times more volatile than Advtech. It trades about 0.13 of its potential returns per unit of risk. Advtech is currently generating about 0.09 per unit of risk. If you would invest  2,700  in Copper 360 on September 27, 2024 and sell it today you would earn a total of  19,300  from holding Copper 360 or generate 714.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.99%
Values	Daily Returns

Copper 360  vs.  Advtech

Copper 360

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Copper 360 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Advtech

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Advtech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Advtech is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Copper 360 and Advtech

The main advantage of trading using opposite Copper 360 and Advtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper 360 position performs unexpectedly, Advtech 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 Advtech will offset losses from the drop in Advtech's long position.

The idea behind Copper 360 and Advtech 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.