Correlation Between Capstone Copper and Antofagasta PLC
Can any of the company-specific risk be diversified away by investing in both Capstone Copper 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 Capstone Copper and Antofagasta PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Copper Corp and Antofagasta PLC, you can compare the effects of market volatilities on Capstone Copper 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 Capstone Copper with a short position of Antofagasta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Copper and Antofagasta PLC.
Diversification Opportunities for Capstone Copper and Antofagasta PLC
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capstone and Antofagasta is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Copper Corp and Antofagasta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta PLC and Capstone Copper 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 Capstone Copper 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 Capstone Copper i.e., Capstone Copper and Antofagasta PLC go up and down completely randomly.
Pair Corralation between Capstone Copper and Antofagasta PLC
Assuming the 90 days horizon Capstone Copper Corp is expected to generate 1.11 times more return on investment than Antofagasta PLC. However, Capstone Copper is 1.11 times more volatile than Antofagasta PLC. It trades about 0.11 of its potential returns per unit of risk. Antofagasta PLC is currently generating about 0.05 per unit of risk. If you would invest 331.00 in Capstone Copper Corp on August 25, 2024 and sell it today you would earn a total of 404.00 from holding Capstone Copper Corp or generate 122.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.78% |
| Values | Daily Returns |
Capstone Copper Corp vs. Antofagasta PLC
Performance |
| Timeline |
| Capstone Copper Corp |
| Antofagasta PLC |
Capstone Copper and Antofagasta PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Copper and Antofagasta PLC
The main advantage of trading using opposite Capstone Copper and Antofagasta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Copper 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.| Capstone Copper vs. Hudbay Minerals | Capstone Copper vs. Ero Copper Corp | Capstone Copper vs. Taseko Mines | Capstone Copper vs. CopperCorp Resources |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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