Correlation Between Aguila American and Copper Mountain
Can any of the company-specific risk be diversified away by investing in both Aguila American and Copper Mountain 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 Aguila American and Copper Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aguila American Gold and Copper Mountain Mining, you can compare the effects of market volatilities on Aguila American and Copper Mountain 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 Aguila American with a short position of Copper Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aguila American and Copper Mountain.
Diversification Opportunities for Aguila American and Copper Mountain
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aguila and Copper is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aguila American Gold and Copper Mountain Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Mountain Mining and Aguila American 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 Aguila American Gold are associated (or correlated) with Copper Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Mountain Mining has no effect on the direction of Aguila American i.e., Aguila American and Copper Mountain go up and down completely randomly.
Pair Corralation between Aguila American and Copper Mountain
Assuming the 90 days horizon Aguila American is expected to generate 47.99 times less return on investment than Copper Mountain. But when comparing it to its historical volatility, Aguila American Gold is 20.13 times less risky than Copper Mountain. It trades about 0.08 of its potential returns per unit of risk. Copper Mountain Mining is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Copper Mountain Mining on August 25, 2024 and sell it today you would earn a total of 23.00 from holding Copper Mountain Mining or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Aguila American Gold vs. Copper Mountain Mining
Performance |
| Timeline |
| Aguila American Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Copper Mountain Mining |
Aguila American and Copper Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aguila American and Copper Mountain
The main advantage of trading using opposite Aguila American and Copper Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aguila American position performs unexpectedly, Copper Mountain 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 Mountain will offset losses from the drop in Copper Mountain's long position.| Aguila American vs. Bell Copper | Aguila American vs. CopperCorp Resources | Aguila American vs. Copper Fox Metals | Aguila American vs. First Quantum Minerals |
| Copper Mountain vs. Ero Copper Corp | Copper Mountain vs. Copper Fox Metals | Copper Mountain vs. First Quantum Minerals | Copper Mountain vs. Hudbay Minerals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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