Correlation Between Getty Copper and California-Engels

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

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

Diversification Opportunities for Getty Copper and California-Engels

0.0

Correlation Coefficient

Getty Copper  California-Engels

Pay attention - limited upside

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

Pair Corralation between Getty Copper and California-Engels

If you would invest  265.00  in California Engels Mining on December 21, 2024 and sell it today you would earn a total of  0.00  from holding California Engels Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Getty Copper  vs.  California Engels Mining

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.

California Engels Mining

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Getty Copper and California-Engels

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

The idea behind Getty Copper and California Engels Mining 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.