Correlation Between Amerigo Resources and Capstone Copper
Can any of the company-specific risk be diversified away by investing in both Amerigo Resources and Capstone 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 Amerigo Resources and Capstone Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amerigo Resources and Capstone Copper Corp, you can compare the effects of market volatilities on Amerigo Resources and Capstone 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 Amerigo Resources with a short position of Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amerigo Resources and Capstone Copper.
Diversification Opportunities for Amerigo Resources and Capstone Copper
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amerigo and Capstone is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amerigo Resources and Capstone Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Copper 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 Capstone Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Copper Corp has no effect on the direction of Amerigo Resources i.e., Amerigo Resources and Capstone Copper go up and down completely randomly.
Pair Corralation between Amerigo Resources and Capstone Copper
Assuming the 90 days horizon Amerigo Resources is expected to under-perform the Capstone Copper. But the otc stock apears to be less risky and, when comparing its historical volatility, Amerigo Resources is 1.49 times less risky than Capstone Copper. The otc stock trades about -0.05 of its potential returns per unit of risk. The Capstone Copper Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 699.00 in Capstone Copper Corp on August 27, 2024 and sell it today you would earn a total of 6.00 from holding Capstone Copper Corp or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amerigo Resources vs. Capstone Copper Corp
Performance |
| Timeline |
| Amerigo Resources |
| Capstone Copper Corp |
Amerigo Resources and Capstone Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amerigo Resources and Capstone Copper
The main advantage of trading using opposite Amerigo Resources and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amerigo Resources position performs unexpectedly, Capstone 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 Capstone Copper will offset losses from the drop in Capstone Copper'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 |
| Capstone Copper vs. Bell Copper | Capstone Copper vs. Copper Fox Metals | Capstone Copper vs. First Quantum Minerals | Capstone Copper vs. Southern Copper |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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