Correlation Between Antofagasta PLC and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC and Marimaca 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 Antofagasta PLC and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Marimaca Copper Corp, you can compare the effects of market volatilities on Antofagasta PLC and Marimaca 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 Antofagasta PLC with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Marimaca Copper.
Diversification Opportunities for Antofagasta PLC and Marimaca Copper
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Antofagasta and Marimaca is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper 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 Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Antofagasta PLC i.e., Antofagasta PLC and Marimaca Copper go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Marimaca Copper
Assuming the 90 days horizon Antofagasta PLC is expected to generate 1.6 times more return on investment than Marimaca Copper. However, Antofagasta PLC is 1.6 times more volatile than Marimaca Copper Corp. It trades about -0.03 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about -0.13 per unit of risk. If you would invest 2,378 in Antofagasta PLC on December 11, 2024 and sell it today you would lose (58.00) from holding Antofagasta PLC or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antofagasta PLC vs. Marimaca Copper Corp
Performance |
| Timeline |
| Antofagasta PLC |
| Marimaca Copper Corp |
Antofagasta PLC and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Marimaca Copper
The main advantage of trading using opposite Antofagasta PLC and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC position performs unexpectedly, Marimaca 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Antofagasta PLC vs. Bell Copper | Antofagasta PLC vs. Arizona Sonoran Copper | Antofagasta PLC vs. CopperCorp Resources | Antofagasta PLC vs. Copper Fox Metals |
| Marimaca Copper vs. Constellation Brands Class | Marimaca Copper vs. Vita Coco | Marimaca Copper vs. MGP Ingredients | Marimaca Copper vs. High Performance Beverages |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |