Correlation Between Copperbank Resources and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Copperbank 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 Copperbank 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 Copperbank Resources Corp and Copper Fox Metals, you can compare the effects of market volatilities on Copperbank 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 Copperbank Resources with a short position of Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and Copper Fox.
Diversification Opportunities for Copperbank Resources and Copper Fox
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Copperbank and Copper is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp 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 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 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 Copperbank Resources i.e., Copperbank Resources and Copper Fox go up and down completely randomly.
Pair Corralation between Copperbank Resources and Copper Fox
Assuming the 90 days horizon Copperbank Resources is expected to generate 2.35 times less return on investment than Copper Fox. But when comparing it to its historical volatility, Copperbank Resources Corp is 1.92 times less risky than Copper Fox. It trades about 0.04 of its potential returns per unit of risk. Copper Fox Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Copper Fox Metals on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Copper Fox Metals or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copperbank Resources Corp vs. Copper Fox Metals
Performance |
| Timeline |
| Copperbank Resources Corp |
| Copper Fox Metals |
Copperbank Resources and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copperbank Resources and Copper Fox
The main advantage of trading using opposite Copperbank Resources and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copperbank 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.| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Copper Fox Metals | Copperbank Resources vs. First Quantum Minerals | Copperbank Resources vs. Southern Copper |
| Copper Fox vs. Copper Mountain Mining | Copper Fox vs. Copper Fox Metals | Copper Fox vs. Highland Copper | Copper Fox vs. Copperbank Resources 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets |