Correlation Between Benton Resources and Kutcho Copper
Can any of the company-specific risk be diversified away by investing in both Benton Resources and Kutcho 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 Benton Resources and Kutcho Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benton Resources and Kutcho Copper Corp, you can compare the effects of market volatilities on Benton Resources and Kutcho 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 Benton Resources with a short position of Kutcho Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benton Resources and Kutcho Copper.
Diversification Opportunities for Benton Resources and Kutcho Copper
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Benton and Kutcho is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Benton Resources and Kutcho Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kutcho Copper Corp and Benton 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 Benton Resources are associated (or correlated) with Kutcho Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kutcho Copper Corp has no effect on the direction of Benton Resources i.e., Benton Resources and Kutcho Copper go up and down completely randomly.
Pair Corralation between Benton Resources and Kutcho Copper
Assuming the 90 days horizon Benton Resources is expected to generate 2.75 times more return on investment than Kutcho Copper. However, Benton Resources is 2.75 times more volatile than Kutcho Copper Corp. It trades about 0.06 of its potential returns per unit of risk. Kutcho Copper Corp is currently generating about 0.01 per unit of risk. If you would invest 13.00 in Benton Resources on September 4, 2024 and sell it today you would lose (8.00) from holding Benton Resources or give up 61.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Benton Resources vs. Kutcho Copper Corp
Performance |
| Timeline |
| Benton Resources |
| Kutcho Copper Corp |
Benton Resources and Kutcho Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benton Resources and Kutcho Copper
The main advantage of trading using opposite Benton Resources and Kutcho Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benton Resources position performs unexpectedly, Kutcho 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 Kutcho Copper will offset losses from the drop in Kutcho Copper's long position.| Benton Resources vs. Advantage Solutions | Benton Resources vs. Atlas Corp | Benton Resources vs. PureCycle Technologies | Benton Resources vs. WM Technology |
| Kutcho Copper vs. Qubec Nickel Corp | Kutcho Copper vs. IGO Limited | Kutcho Copper vs. Avarone Metals | Kutcho Copper vs. Adriatic Metals PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |