Correlation Between Libero Copper and Ocumetics Technology

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

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

Diversification Opportunities for Libero Copper and Ocumetics Technology

0.04

Correlation Coefficient

Libero Copper  Ocumetics Technology

Significant diversification

The 3 months correlation between Libero and Ocumetics is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Libero Copper Corp and Ocumetics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocumetics Technology Corp and Libero 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 Libero Copper Corp are associated (or correlated) with Ocumetics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocumetics Technology Corp has no effect on the direction of Libero Copper i.e., Libero Copper and Ocumetics Technology go up and down completely randomly.

Pair Corralation between Libero Copper and Ocumetics Technology

Assuming the 90 days horizon Libero Copper Corp is expected to under-perform the Ocumetics Technology. But the stock apears to be less risky and, when comparing its historical volatility, Libero Copper Corp is 1.19 times less risky than Ocumetics Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Ocumetics Technology Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Ocumetics Technology Corp on December 3, 2024 and sell it today you would earn a total of  2.00  from holding Ocumetics Technology Corp or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Libero Copper Corp  vs.  Ocumetics Technology Corp

Libero Copper Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Libero Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Ocumetics Technology Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ocumetics Technology Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Ocumetics Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Libero Copper and Ocumetics Technology

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

The idea behind Libero Copper Corp and Ocumetics Technology Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.