Correlation Between Interra Copper and Base Resources
Can any of the company-specific risk be diversified away by investing in both Interra Copper and Base 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 Interra Copper and Base Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interra Copper Corp and Base Resources Limited, you can compare the effects of market volatilities on Interra Copper and Base 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 Interra Copper with a short position of Base Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interra Copper and Base Resources.
Diversification Opportunities for Interra Copper and Base Resources
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Interra and Base is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Interra Copper Corp and Base Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Base Resources and Interra 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 Interra Copper Corp are associated (or correlated) with Base Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Base Resources has no effect on the direction of Interra Copper i.e., Interra Copper and Base Resources go up and down completely randomly.
Pair Corralation between Interra Copper and Base Resources
If you would invest 8.50 in Interra Copper Corp on September 2, 2024 and sell it today you would lose (1.92) from holding Interra Copper Corp or give up 22.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Interra Copper Corp vs. Base Resources Limited
Performance |
| Timeline |
| Interra Copper Corp |
| Base Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Interra Copper and Base Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interra Copper and Base Resources
The main advantage of trading using opposite Interra Copper and Base Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interra Copper position performs unexpectedly, Base 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 Base Resources will offset losses from the drop in Base Resources' long position.| Interra Copper vs. Sherritt International | Interra Copper vs. Metals X Limited | Interra Copper vs. Anglo American PLC | Interra Copper vs. ZincX Resources Corp |
| Base Resources vs. Macmahon Holdings Limited | Base Resources vs. Rokmaster Resources Corp | Base Resources vs. Hudson Resources | Base Resources vs. Thunder Gold 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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