Correlation Between Copper Mountain and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Copper Mountain 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 Copper Mountain and Copper Fox 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 Copper Fox Metals, you can compare the effects of market volatilities on Copper Mountain 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 Copper Mountain with a short position of Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper Mountain and Copper Fox.
Diversification Opportunities for Copper Mountain and Copper Fox
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Copper and Copper is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Copper Mountain Mining 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 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 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 Copper Mountain i.e., Copper Mountain and Copper Fox go up and down completely randomly.
Pair Corralation between Copper Mountain and Copper Fox
Assuming the 90 days horizon Copper Mountain Mining is expected to generate 20.37 times more return on investment than Copper Fox. However, Copper Mountain is 20.37 times more volatile than Copper Fox Metals. It trades about 0.18 of its potential returns per unit of risk. Copper Fox Metals is currently generating about 0.06 per unit of risk. If you would invest 0.00 in Copper Mountain Mining on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Copper Mountain Mining or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.1% |
| Values | Daily Returns |
Copper Mountain Mining vs. Copper Fox Metals
Performance |
| Timeline |
| Copper Mountain Mining |
| Copper Fox Metals |
Copper Mountain and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copper Mountain and Copper Fox
The main advantage of trading using opposite Copper Mountain and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper Mountain 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.| Copper Mountain vs. Ero Copper Corp | Copper Mountain vs. Copper Fox Metals | Copper Mountain vs. First Quantum Minerals | Copper Mountain vs. Hudbay Minerals |
| Copper Fox vs. First Majestic Silver | Copper Fox vs. Ivanhoe Energy | Copper Fox vs. Orezone Gold Corp | Copper Fox vs. Faraday Copper 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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