Correlation Between American Copper and Triple Flag
Can any of the company-specific risk be diversified away by investing in both American Copper and Triple Flag 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 American Copper and Triple Flag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Copper Development and Triple Flag Precious, you can compare the effects of market volatilities on American Copper and Triple Flag 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 American Copper with a short position of Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Copper and Triple Flag.
Diversification Opportunities for American Copper and Triple Flag
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and Triple is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Copper Development and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious and American 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 American Copper Development are associated (or correlated) with Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of American Copper i.e., American Copper and Triple Flag go up and down completely randomly.
Pair Corralation between American Copper and Triple Flag
Assuming the 90 days horizon American Copper Development is expected to generate 14.76 times more return on investment than Triple Flag. However, American Copper is 14.76 times more volatile than Triple Flag Precious. It trades about 0.05 of its potential returns per unit of risk. Triple Flag Precious is currently generating about -0.22 per unit of risk. If you would invest 4.00 in American Copper Development on August 28, 2024 and sell it today you would lose (1.00) from holding American Copper Development or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Copper Development vs. Triple Flag Precious
Performance |
| Timeline |
| American Copper Deve |
| Triple Flag Precious |
American Copper and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Copper and Triple Flag
The main advantage of trading using opposite American Copper and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Copper position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| American Copper vs. Legacy Education | American Copper vs. NVIDIA | American Copper vs. Apple Inc | American Copper vs. Microsoft |
| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. Gatos Silver |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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