Correlation Between Getty Copper and Allient

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

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

Diversification Opportunities for Getty Copper and Allient

0.0

Correlation Coefficient

Getty Copper  Allient

Pay attention - limited upside

The 3 months correlation between Getty and Allient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and Getty Copper 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 Getty Copper are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Getty Copper i.e., Getty Copper and Allient go up and down completely randomly.

Pair Corralation between Getty Copper and Allient

Assuming the 90 days horizon Getty Copper is expected to generate 2.59 times more return on investment than Allient. However, Getty Copper is 2.59 times more volatile than Allient. It trades about 0.04 of its potential returns per unit of risk. Allient is currently generating about -0.01 per unit of risk. If you would invest  2.30  in Getty Copper on September 24, 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

Getty Copper  vs.  Allient

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. Despite nearly stable fundamental indicators, Getty Copper is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Allient

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allient are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Allient unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Getty Copper and Allient

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

The idea behind Getty Copper and Allient 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.