Correlation Between Copperbank Resources and Lion One
Can any of the company-specific risk be diversified away by investing in both Copperbank Resources and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Copperbank Resources and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and Lion One.
Diversification Opportunities for Copperbank Resources and Lion One
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Copperbank and Lion is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Copperbank Resources i.e., Copperbank Resources and Lion One go up and down completely randomly.
Pair Corralation between Copperbank Resources and Lion One
Assuming the 90 days horizon Copperbank Resources Corp is expected to under-perform the Lion One. But the otc stock apears to be less risky and, when comparing its historical volatility, Copperbank Resources Corp is 2.45 times less risky than Lion One. The otc stock trades about -0.1 of its potential returns per unit of risk. The Lion One Metals is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Lion One Metals on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Lion One Metals or generate 42.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copperbank Resources Corp vs. Lion One Metals
Performance |
| Timeline |
| Copperbank Resources Corp |
| Lion One Metals |
Copperbank Resources and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copperbank Resources and Lion One
The main advantage of trading using opposite Copperbank Resources and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copperbank Resources position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Arizona Sonoran Copper | Copperbank Resources vs. CopperCorp Resources | Copperbank Resources vs. Copper Fox Metals |
| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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