Correlation Between Ascendant Resources and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Ascendant 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 Ascendant 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 Ascendant Resources and Copper Fox Metals, you can compare the effects of market volatilities on Ascendant 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 Ascendant Resources with a short position of Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendant Resources and Copper Fox.
Diversification Opportunities for Ascendant Resources and Copper Fox
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendant and Copper is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ascendant 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 Ascendant 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 Ascendant 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 Ascendant Resources i.e., Ascendant Resources and Copper Fox go up and down completely randomly.
Pair Corralation between Ascendant Resources and Copper Fox
Assuming the 90 days horizon Ascendant Resources is expected to generate 1.68 times less return on investment than Copper Fox. In addition to that, Ascendant Resources is 1.14 times more volatile than Copper Fox Metals. It trades about 0.04 of its total potential returns per unit of risk. Copper Fox Metals is currently generating about 0.08 per unit of volatility. If you would invest 12.00 in Copper Fox Metals on August 25, 2024 and sell it today you would earn a total of 11.00 from holding Copper Fox Metals or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendant Resources vs. Copper Fox Metals
Performance |
| Timeline |
| Ascendant Resources |
| Copper Fox Metals |
Ascendant Resources and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendant Resources and Copper Fox
The main advantage of trading using opposite Ascendant Resources and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendant 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.| Ascendant Resources vs. Norra Metals Corp | Ascendant Resources vs. ZincX Resources Corp | Ascendant Resources vs. Nuinsco Resources Limited | Ascendant Resources vs. South Star Battery |
| Copper Fox vs. Ascendant Resources | Copper Fox vs. Cantex Mine Development | Copper Fox vs. Amarc Resources | Copper Fox vs. Sterling Metals 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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