Correlation Between Freeport McMoran and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Freeport McMoran and Multimanager Lifestyle 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 Freeport McMoran and Multimanager Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freeport McMoran Copper Gold and Multimanager Lifestyle Growth, you can compare the effects of market volatilities on Freeport McMoran and Multimanager Lifestyle 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 Freeport McMoran with a short position of Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeport McMoran and Multimanager Lifestyle.
Diversification Opportunities for Freeport McMoran and Multimanager Lifestyle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freeport and Multimanager is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freeport McMoran Copper Gold and Multimanager Lifestyle Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle and Freeport McMoran 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 Freeport McMoran Copper Gold are associated (or correlated) with Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Freeport McMoran i.e., Freeport McMoran and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Freeport McMoran and Multimanager Lifestyle
If you would invest 5,099 in Freeport McMoran Copper Gold on March 6, 2024 and sell it today you would earn a total of 105.00 from holding Freeport McMoran Copper Gold or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Freeport McMoran Copper Gold vs. Multimanager Lifestyle Growth
Performance |
| Timeline |
| Freeport McMoran Copper |
| Multimanager Lifestyle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freeport McMoran and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |