Correlation Between Global Lights and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Global Lights and Copperbank Resources 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 Global Lights and Copperbank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Lights Acquisition and Copperbank Resources Corp, you can compare the effects of market volatilities on Global Lights and Copperbank Resources 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 Global Lights with a short position of Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Lights and Copperbank Resources.
Diversification Opportunities for Global Lights and Copperbank Resources
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Copperbank is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Global Lights Acquisition and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp and Global Lights 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 Global Lights Acquisition are associated (or correlated) with Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Global Lights i.e., Global Lights and Copperbank Resources go up and down completely randomly.
Pair Corralation between Global Lights and Copperbank Resources
Given the investment horizon of 90 days Global Lights is expected to generate 1.65 times less return on investment than Copperbank Resources. But when comparing it to its historical volatility, Global Lights Acquisition is 24.74 times less risky than Copperbank Resources. It trades about 0.14 of its potential returns per unit of risk. Copperbank Resources Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Copperbank Resources Corp on October 11, 2024 and sell it today you would lose (10.00) from holding Copperbank Resources Corp or give up 16.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 55.65% |
| Values | Daily Returns |
Global Lights Acquisition vs. Copperbank Resources Corp
Performance |
| Timeline |
| Global Lights Acquisition |
| Copperbank Resources Corp |
Global Lights and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Lights and Copperbank Resources
The main advantage of trading using opposite Global Lights and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Lights position performs unexpectedly, Copperbank Resources 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.| Global Lights vs. Copperbank Resources Corp | Global Lights vs. Consol Energy | Global Lights vs. Deluxe | Global Lights vs. Chester Mining |
| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Arizona Sonoran Copper | Copperbank Resources vs. Dor Copper Mining | Copperbank Resources 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |