Correlation Between Meta Platforms and Copper Fox

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and Copper Fox 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 Meta Platforms and Copper Fox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms CDR and Copper Fox Metals, you can compare the effects of market volatilities on Meta Platforms and Copper Fox 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 Meta Platforms with a short position of Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Copper Fox.

Diversification Opportunities for Meta Platforms and Copper Fox

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Meta and Copper is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms CDR and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox Metals and Meta Platforms 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 Meta Platforms CDR are associated (or correlated) with Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of Meta Platforms i.e., Meta Platforms and Copper Fox go up and down completely randomly.

Pair Corralation between Meta Platforms and Copper Fox

Assuming the 90 days trading horizon Meta Platforms CDR is expected to generate 0.46 times more return on investment than Copper Fox. However, Meta Platforms CDR is 2.18 times less risky than Copper Fox. It trades about 0.13 of its potential returns per unit of risk. Copper Fox Metals is currently generating about -0.28 per unit of risk. If you would invest  3,102  in Meta Platforms CDR on September 23, 2024 and sell it today you would earn a total of  147.00  from holding Meta Platforms CDR or generate 4.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Meta Platforms CDR  vs.  Copper Fox Metals

 Performance 
       Timeline  
Meta Platforms CDR 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Meta Platforms CDR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Meta Platforms is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Copper Fox Metals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Copper Fox Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Copper Fox is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Meta Platforms and Copper Fox Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Meta Platforms and Copper Fox

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

Other Complementary Tools

Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.