Correlation Between Capstone Copper and Doré Copper
Can any of the company-specific risk be diversified away by investing in both Capstone Copper and Doré 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 Capstone Copper and Doré Copper 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 Dor Copper Mining, you can compare the effects of market volatilities on Capstone Copper and Doré 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 Capstone Copper with a short position of Doré Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Copper and Doré Copper.
Diversification Opportunities for Capstone Copper and Doré Copper
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Capstone and Doré is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Copper Corp and Dor Copper Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dor Copper Mining 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 Doré Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dor Copper Mining has no effect on the direction of Capstone Copper i.e., Capstone Copper and Doré Copper go up and down completely randomly.
Pair Corralation between Capstone Copper and Doré Copper
Assuming the 90 days horizon Capstone Copper Corp is expected to generate 0.8 times more return on investment than Doré Copper. However, Capstone Copper Corp is 1.24 times less risky than Doré Copper. It trades about -0.03 of its potential returns per unit of risk. Dor Copper Mining is currently generating about -0.39 per unit of risk. If you would invest 699.00 in Capstone Copper Corp on August 29, 2024 and sell it today you would lose (24.00) from holding Capstone Copper Corp or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Capstone Copper Corp vs. Dor Copper Mining
Performance |
| Timeline |
| Capstone Copper Corp |
| Dor Copper Mining |
Capstone Copper and Doré Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Copper and Doré Copper
The main advantage of trading using opposite Capstone Copper and Doré Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Copper position performs unexpectedly, Doré 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 Doré Copper will offset losses from the drop in Doré Copper's long position.| Capstone Copper vs. Hudbay Minerals | Capstone Copper vs. Ero Copper Corp | Capstone Copper vs. Taseko Mines | Capstone Copper vs. CopperCorp Resources |
| Doré Copper vs. Imperial Metals | Doré Copper vs. Bell Copper | Doré Copper vs. Copper Fox Metals | Doré Copper vs. Arizona Sonoran 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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