Correlation Between Amarc Resources and Copper Mountain
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Copper Mountain 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 Mountain 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 Mountain Mining, you can compare the effects of market volatilities on Amarc Resources and Copper Mountain 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 Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Copper Mountain.
Diversification Opportunities for Amarc Resources and Copper Mountain
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amarc and Copper is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Copper Mountain Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Mountain Mining 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 Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Mountain Mining has no effect on the direction of Amarc Resources i.e., Amarc Resources and Copper Mountain go up and down completely randomly.
Pair Corralation between Amarc Resources and Copper Mountain
Assuming the 90 days horizon Amarc Resources is expected to under-perform the Copper Mountain. But the otc stock apears to be less risky and, when comparing its historical volatility, Amarc Resources is 1.18 times less risky than Copper Mountain. The otc stock trades about -0.12 of its potential returns per unit of risk. The Copper Mountain Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Copper Mountain Mining on January 13, 2025 and sell it today you would earn a total of 0.00 from holding Copper Mountain Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarc Resources vs. Copper Mountain Mining
Performance |
| Timeline |
| Amarc Resources |
| Copper Mountain Mining |
Amarc Resources and Copper Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Copper Mountain
The main advantage of trading using opposite Amarc Resources and Copper Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Copper Mountain 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 Mountain will offset losses from the drop in Copper Mountain's long position.| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
| Copper Mountain vs. Ero Copper Corp | Copper Mountain vs. Copper Fox Metals | Copper Mountain vs. First Quantum Minerals | Copper Mountain vs. Hudbay 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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