Correlation Between Copperbank Resources and Antofagasta PLC
Can any of the company-specific risk be diversified away by investing in both Copperbank Resources and Antofagasta PLC 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 Copperbank Resources and Antofagasta PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copperbank Resources Corp and Antofagasta PLC, you can compare the effects of market volatilities on Copperbank Resources and Antofagasta PLC 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 Copperbank Resources with a short position of Antofagasta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and Antofagasta PLC.
Diversification Opportunities for Copperbank Resources and Antofagasta PLC
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Copperbank and Antofagasta is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp and Antofagasta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta PLC and Copperbank 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 Copperbank Resources Corp are associated (or correlated) with Antofagasta PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta PLC has no effect on the direction of Copperbank Resources i.e., Copperbank Resources and Antofagasta PLC go up and down completely randomly.
Pair Corralation between Copperbank Resources and Antofagasta PLC
Assuming the 90 days horizon Copperbank Resources Corp is expected to generate 1.32 times more return on investment than Antofagasta PLC. However, Copperbank Resources is 1.32 times more volatile than Antofagasta PLC. It trades about 0.05 of its potential returns per unit of risk. Antofagasta PLC is currently generating about 0.05 per unit of risk. If you would invest 46.00 in Copperbank Resources Corp on August 25, 2024 and sell it today you would earn a total of 18.00 from holding Copperbank Resources Corp or generate 39.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.78% |
| Values | Daily Returns |
Copperbank Resources Corp vs. Antofagasta PLC
Performance |
| Timeline |
| Copperbank Resources Corp |
| Antofagasta PLC |
Copperbank Resources and Antofagasta PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copperbank Resources and Antofagasta PLC
The main advantage of trading using opposite Copperbank Resources and Antofagasta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copperbank Resources position performs unexpectedly, Antofagasta PLC 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 Antofagasta PLC will offset losses from the drop in Antofagasta PLC's long position.| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. CopperCorp Resources | Copperbank Resources vs. Copper Fox Metals | Copperbank Resources vs. First Quantum Minerals |
| Antofagasta PLC vs. Bell Copper | Antofagasta PLC vs. Arizona Sonoran Copper | Antofagasta PLC vs. Dor Copper Mining | Antofagasta PLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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