Correlation Between Amarc Resources and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Amarc 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 Amarc 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 Amarc Resources and Copper Fox Metals, you can compare the effects of market volatilities on Amarc 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 Amarc Resources with a short position of Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Copper Fox.
Diversification Opportunities for Amarc Resources and Copper Fox
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amarc and Copper is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Amarc 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 Amarc 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 Amarc 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 Amarc Resources i.e., Amarc Resources and Copper Fox go up and down completely randomly.
Pair Corralation between Amarc Resources and Copper Fox
Assuming the 90 days horizon Amarc Resources is expected to generate 1.75 times less return on investment than Copper Fox. But when comparing it to its historical volatility, Amarc Resources is 1.85 times less risky than Copper Fox. It trades about 0.08 of its potential returns per unit of risk. Copper Fox Metals is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarc Resources vs. Copper Fox Metals
Performance |
| Timeline |
| Amarc Resources |
| Copper Fox Metals |
Amarc Resources and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Copper Fox
The main advantage of trading using opposite Amarc Resources and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc 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.| Amarc Resources vs. Norra Metals Corp | Amarc Resources vs. ZincX Resources Corp | Amarc Resources vs. Nuinsco Resources Limited | Amarc 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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