Correlation Between Copper Fox and Capstone Copper
Can any of the company-specific risk be diversified away by investing in both Copper Fox 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 Copper Fox and Capstone Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copper Fox Metals and Capstone Copper Corp, you can compare the effects of market volatilities on Copper Fox 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 Copper Fox with a short position of Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper Fox and Capstone Copper.
Diversification Opportunities for Copper Fox and Capstone Copper
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Copper and Capstone is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Copper Fox Metals 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 Copper Fox 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 Copper Fox Metals 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 Copper Fox i.e., Copper Fox and Capstone Copper go up and down completely randomly.
Pair Corralation between Copper Fox and Capstone Copper
Assuming the 90 days horizon Copper Fox Metals is expected to generate 1.99 times more return on investment than Capstone Copper. However, Copper Fox is 1.99 times more volatile than Capstone Copper Corp. It trades about 0.03 of its potential returns per unit of risk. Capstone Copper Corp is currently generating about -0.04 per unit of risk. If you would invest 20.00 in Copper Fox Metals on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Copper Fox Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copper Fox Metals vs. Capstone Copper Corp
Performance |
| Timeline |
| Copper Fox Metals |
| Capstone Copper Corp |
Copper Fox and Capstone Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copper Fox and Capstone Copper
The main advantage of trading using opposite Copper Fox and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper Fox 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.| Copper Fox vs. Copper Mountain Mining | Copper Fox vs. Copper Fox Metals | Copper Fox vs. Highland Copper | Copper Fox vs. Copperbank Resources Corp |
| Capstone Copper vs. Hudbay Minerals | Capstone Copper vs. Ero Copper Corp | Capstone Copper vs. Taseko Mines | Capstone Copper vs. CopperCorp Resources |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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