Correlation Between Amerigo Resources and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Amerigo Resources and Copper Fox 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 Amerigo Resources and Copper Fox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amerigo Resources and Copper Fox Metals, you can compare the effects of market volatilities on Amerigo Resources and Copper Fox 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 Amerigo Resources with a short position of Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amerigo Resources and Copper Fox.
Diversification Opportunities for Amerigo Resources and Copper Fox
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amerigo and Copper is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amerigo Resources and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox Metals and Amerigo Resources 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 Amerigo Resources are associated (or correlated) with Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of Amerigo Resources i.e., Amerigo Resources and Copper Fox go up and down completely randomly.
Pair Corralation between Amerigo Resources and Copper Fox
Assuming the 90 days horizon Amerigo Resources is expected to under-perform the Copper Fox. But the otc stock apears to be less risky and, when comparing its historical volatility, Amerigo Resources is 3.04 times less risky than Copper Fox. The otc stock trades about -0.1 of its potential returns per unit of risk. The Copper Fox Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Copper Fox Metals on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Copper Fox Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amerigo Resources vs. Copper Fox Metals
Performance |
| Timeline |
| Amerigo Resources |
| Copper Fox Metals |
Amerigo Resources and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amerigo Resources and Copper Fox
The main advantage of trading using opposite Amerigo Resources and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amerigo Resources position performs unexpectedly, Copper Fox 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 Fox will offset losses from the drop in Copper Fox's long position.| Amerigo Resources vs. Ascendant Resources | Amerigo Resources vs. Cantex Mine Development | Amerigo Resources vs. Amarc Resources | Amerigo Resources vs. Sterling Metals Corp |
| Copper Fox vs. Copper Mountain Mining | Copper Fox vs. Copper Fox Metals | Copper Fox vs. Highland Copper | Copper Fox vs. Copperbank Resources Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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