Correlation Between Getty Copper and Blue Moon

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

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

Diversification Opportunities for Getty Copper and Blue Moon

0.0

Correlation Coefficient

Getty Copper  Blue Moon

Pay attention - limited upside

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

Pair Corralation between Getty Copper and Blue Moon

Assuming the 90 days horizon Getty Copper is expected to generate 28.0 times less return on investment than Blue Moon. But when comparing it to its historical volatility, Getty Copper is 12.99 times less risky than Blue Moon. It trades about 0.04 of its potential returns per unit of risk. Blue Moon Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Blue Moon Metals on September 24, 2024 and sell it today you would earn a total of  14.00  from holding Blue Moon Metals or generate 127.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Getty Copper  vs.  Blue Moon Metals

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.

Blue Moon Metals

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Moon Metals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Blue Moon reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Getty Copper and Blue Moon

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

The idea behind Getty Copper and Blue Moon Metals 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.