Correlation Between Getty Copper and Femasys

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

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

Diversification Opportunities for Getty Copper and Femasys

0.0

Correlation Coefficient

Getty Copper  Femasys

Pay attention - limited upside

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

Pair Corralation between Getty Copper and Femasys

Assuming the 90 days horizon Getty Copper is expected to generate 1.72 times more return on investment than Femasys. However, Getty Copper is 1.72 times more volatile than Femasys. It trades about 0.09 of its potential returns per unit of risk. Femasys is currently generating about 0.05 per unit of risk. If you would invest  1.11  in Getty Copper on October 24, 2024 and sell it today you would earn a total of  3.77  from holding Getty Copper or generate 339.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.8%
Values	Daily Returns

Getty Copper  vs.  Femasys

Getty Copper

Risk-Adjusted Performance

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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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Femasys

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Femasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Femasys is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Getty Copper and Femasys

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

The idea behind Getty Copper and Femasys 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.