Correlation Between Southern Copper and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Southern Copper and CATLIN GROUP 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 Southern Copper and CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Copper Corp and CATLIN GROUP , you can compare the effects of market volatilities on Southern Copper and CATLIN GROUP 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 Southern Copper with a short position of CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and CATLIN GROUP.
Diversification Opportunities for Southern Copper and CATLIN GROUP
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southern and CATLIN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper Corp and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP and Southern 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 Southern Copper Corp are associated (or correlated) with CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Southern Copper i.e., Southern Copper and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Southern Copper and CATLIN GROUP
Assuming the 90 days trading horizon Southern Copper Corp is expected to under-perform the CATLIN GROUP. In addition to that, Southern Copper is 2.47 times more volatile than CATLIN GROUP . It trades about -0.27 of its total potential returns per unit of risk. CATLIN GROUP is currently generating about -0.28 per unit of volatility. If you would invest 9,950 in CATLIN GROUP on August 30, 2024 and sell it today you would lose (450.00) from holding CATLIN GROUP or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Southern Copper Corp vs. CATLIN GROUP
Performance |
| Timeline |
| Southern Copper Corp |
| CATLIN GROUP |
Southern Copper and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Copper and CATLIN GROUP
The main advantage of trading using opposite Southern Copper and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Southern Copper vs. Tungsten West PLC | Southern Copper vs. Argo Group Limited | Southern Copper vs. Hardide PLC | Southern Copper vs. Versarien PLC |
| CATLIN GROUP vs. Tungsten West PLC | CATLIN GROUP vs. Argo Group Limited | CATLIN GROUP vs. Hardide PLC | CATLIN GROUP vs. Versarien PLC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |