Correlation Between Copper Mountain and Capstone Copper
Can any of the company-specific risk be diversified away by investing in both Copper Mountain 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 Mountain 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 Mountain Mining and Capstone Copper Corp, you can compare the effects of market volatilities on Copper Mountain 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 Mountain with a short position of Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper Mountain and Capstone Copper.
Diversification Opportunities for Copper Mountain and Capstone Copper
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Copper and Capstone is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Copper Mountain Mining 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 Mountain 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 Mountain Mining 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 Mountain i.e., Copper Mountain and Capstone Copper go up and down completely randomly.
Pair Corralation between Copper Mountain and Capstone Copper
Assuming the 90 days horizon Copper Mountain Mining is expected to under-perform the Capstone Copper. In addition to that, Copper Mountain is 1.87 times more volatile than Capstone Copper Corp. It trades about -0.22 of its total potential returns per unit of risk. Capstone Copper Corp is currently generating about 0.03 per unit of volatility. If you would invest 699.00 in Capstone Copper Corp on August 27, 2024 and sell it today you would earn a total of 6.00 from holding Capstone Copper Corp or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copper Mountain Mining vs. Capstone Copper Corp
Performance |
| Timeline |
| Copper Mountain Mining |
| Capstone Copper Corp |
Copper Mountain and Capstone Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copper Mountain and Capstone Copper
The main advantage of trading using opposite Copper Mountain and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper Mountain 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 Mountain vs. Ascendant Resources | Copper Mountain vs. Cantex Mine Development | Copper Mountain vs. Amarc Resources | Copper Mountain vs. Sterling Metals Corp |
| Capstone Copper vs. Bell Copper | Capstone Copper vs. Copper Fox Metals | Capstone Copper vs. First Quantum Minerals | Capstone Copper vs. Southern Copper |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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