Correlation Between 26442UAA2 and Getty Copper

Can any of the company-specific risk be diversified away by investing in both 26442UAA2 and Getty Copper 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 26442UAA2 and Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY PROGRESS and Getty Copper, you can compare the effects of market volatilities on 26442UAA2 and Getty Copper 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 26442UAA2 with a short position of Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442UAA2 and Getty Copper.

Diversification Opportunities for 26442UAA2 and Getty Copper

0.0

Correlation Coefficient

26442UAA2  Getty Copper

Pay attention - limited upside

The 3 months correlation between 26442UAA2 and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY PROGRESS and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper and 26442UAA2 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 DUKE ENERGY PROGRESS are associated (or correlated) with Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of 26442UAA2 i.e., 26442UAA2 and Getty Copper go up and down completely randomly.

Pair Corralation between 26442UAA2 and Getty Copper

Assuming the 90 days trading horizon 26442UAA2 is expected to generate 329.15 times less return on investment than Getty Copper. But when comparing it to its historical volatility, DUKE ENERGY PROGRESS is 19.59 times less risky than Getty Copper. It trades about 0.0 of its potential returns per unit of risk. Getty Copper is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.34  in Getty Copper on October 10, 2024 and sell it today you would earn a total of  3.54  from holding Getty Copper or generate 264.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.68%
Values	Daily Returns

DUKE ENERGY PROGRESS  vs.  Getty Copper

DUKE ENERGY PROGRESS

Risk-Adjusted Performance

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Very Weak

Over the last 90 days DUKE ENERGY PROGRESS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 26442UAA2 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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

Pair Trading with 26442UAA2 and Getty Copper

The main advantage of trading using opposite 26442UAA2 and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442UAA2 position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper's long position.

The idea behind DUKE ENERGY PROGRESS and Getty Copper 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..