Correlation Between Amerigo Resources and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Amerigo Resources 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 Amerigo Resources and Copperbank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amerigo Resources and Copperbank Resources Corp, you can compare the effects of market volatilities on Amerigo Resources 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 Amerigo Resources with a short position of Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amerigo Resources and Copperbank Resources.
Diversification Opportunities for Amerigo Resources and Copperbank Resources
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amerigo and Copperbank is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Amerigo Resources 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 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 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 Amerigo Resources i.e., Amerigo Resources and Copperbank Resources go up and down completely randomly.
Pair Corralation between Amerigo Resources and Copperbank Resources
Assuming the 90 days horizon Amerigo Resources is expected to generate 1.31 times less return on investment than Copperbank Resources. But when comparing it to its historical volatility, Amerigo Resources is 1.43 times less risky than Copperbank Resources. It trades about 0.04 of its potential returns per unit of risk. Copperbank Resources Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Copperbank Resources Corp on August 25, 2024 and sell it today you would earn a total of 22.00 from holding Copperbank Resources Corp or generate 52.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amerigo Resources vs. Copperbank Resources Corp
Performance |
| Timeline |
| Amerigo Resources |
| Copperbank Resources Corp |
Amerigo Resources and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amerigo Resources and Copperbank Resources
The main advantage of trading using opposite Amerigo Resources and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amerigo Resources 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.| Amerigo Resources vs. First Quantum Minerals | Amerigo Resources vs. Antofagasta PLC | Amerigo Resources vs. Capstone Copper Corp | Amerigo Resources vs. Copper Mountain Mining |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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