Correlation Between Applied Minerals and Cascadero Copper
Can any of the company-specific risk be diversified away by investing in both Applied Minerals and Cascadero 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 Applied Minerals and Cascadero Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Minerals and Cascadero Copper, you can compare the effects of market volatilities on Applied Minerals and Cascadero 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 Applied Minerals with a short position of Cascadero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Minerals and Cascadero Copper.
Diversification Opportunities for Applied Minerals and Cascadero Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Cascadero is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Minerals and Cascadero Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cascadero Copper and Applied Minerals 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 Applied Minerals are associated (or correlated) with Cascadero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cascadero Copper has no effect on the direction of Applied Minerals i.e., Applied Minerals and Cascadero Copper go up and down completely randomly.
Pair Corralation between Applied Minerals and Cascadero Copper
If you would invest 1.20 in Cascadero Copper on September 1, 2024 and sell it today you would lose (0.21) from holding Cascadero Copper or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Applied Minerals vs. Cascadero Copper
Performance |
| Timeline |
| Applied Minerals |
| Cascadero Copper |
Applied Minerals and Cascadero Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Minerals and Cascadero Copper
The main advantage of trading using opposite Applied Minerals and Cascadero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Minerals position performs unexpectedly, Cascadero 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 Cascadero Copper will offset losses from the drop in Cascadero Copper's long position.| Applied Minerals vs. Granite Creek Copper | Applied Minerals vs. South Star Battery | Applied Minerals vs. Bayhorse Silver | Applied Minerals vs. Golden Lake Exploration |
| Cascadero Copper vs. ATT Inc | Cascadero Copper vs. Merck Company | Cascadero Copper vs. Walt Disney | Cascadero Copper vs. Caterpillar |
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 CEOs Directory module to screen CEOs from public companies around the world.
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