Correlation Between Funko and Getty Copper

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

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

Diversification Opportunities for Funko and Getty Copper

0.61

Correlation Coefficient

Funko  Getty Copper

Poor diversification

The 3 months correlation between Funko and Getty is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper and Funko 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 Funko Inc 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 Funko i.e., Funko and Getty Copper go up and down completely randomly.

Pair Corralation between Funko and Getty Copper

Given the investment horizon of 90 days Funko Inc is expected to under-perform the Getty Copper. But the stock apears to be less risky and, when comparing its historical volatility, Funko Inc is 2.18 times less risky than Getty Copper. The stock trades about -0.3 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  4.88  in Getty Copper on December 28, 2024 and sell it today you would lose (2.88) from holding Getty Copper or give up 59.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Funko Inc  vs.  Getty Copper

Funko Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Funko Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Getty Copper

Risk-Adjusted Performance

Very Weak

Over the last 90 days Getty Copper has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Funko and Getty Copper

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

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.