Correlation Between Antofagasta PLC and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC and Copperbank Resources 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 Antofagasta PLC and Copperbank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Copperbank Resources Corp, you can compare the effects of market volatilities on Antofagasta PLC and Copperbank Resources 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 Antofagasta PLC with a short position of Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Copperbank Resources.
Diversification Opportunities for Antofagasta PLC and Copperbank Resources
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Antofagasta and Copperbank is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp and Antofagasta PLC 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 Antofagasta PLC are associated (or correlated) with Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Antofagasta PLC i.e., Antofagasta PLC and Copperbank Resources go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Copperbank Resources
Assuming the 90 days horizon Antofagasta PLC is expected to under-perform the Copperbank Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Antofagasta PLC is 1.03 times less risky than Copperbank Resources. The pink sheet trades about -0.19 of its potential returns per unit of risk. The Copperbank Resources Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Copperbank Resources Corp on August 25, 2024 and sell it today you would lose (1.00) from holding Copperbank Resources Corp or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Antofagasta PLC vs. Copperbank Resources Corp
Performance |
| Timeline |
| Antofagasta PLC |
| Copperbank Resources Corp |
Antofagasta PLC and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Copperbank Resources
The main advantage of trading using opposite Antofagasta PLC and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC position performs unexpectedly, Copperbank Resources 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.| Antofagasta PLC vs. Bell Copper | Antofagasta PLC vs. Arizona Sonoran Copper | Antofagasta PLC vs. Dor Copper Mining | Antofagasta PLC vs. CopperCorp Resources |
| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. CopperCorp Resources | Copperbank Resources vs. Copper Fox Metals | Copperbank Resources vs. First Quantum 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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