Correlation Between Interra Copper and CITIC Resources
Can any of the company-specific risk be diversified away by investing in both Interra Copper and CITIC 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 CITIC 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 CITIC Resources Holdings, you can compare the effects of market volatilities on Interra Copper and CITIC 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 CITIC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interra Copper and CITIC Resources.
Diversification Opportunities for Interra Copper and CITIC Resources
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Interra and CITIC is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Interra Copper Corp and CITIC Resources Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Resources Holdings 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 CITIC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Resources Holdings has no effect on the direction of Interra Copper i.e., Interra Copper and CITIC Resources go up and down completely randomly.
Pair Corralation between Interra Copper and CITIC Resources
If you would invest 8.39 in Interra Copper Corp on August 31, 2024 and sell it today you would lose (1.81) from holding Interra Copper Corp or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Interra Copper Corp vs. CITIC Resources Holdings
Performance |
| Timeline |
| Interra Copper Corp |
| CITIC Resources Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Interra Copper and CITIC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interra Copper and CITIC Resources
The main advantage of trading using opposite Interra Copper and CITIC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interra Copper position performs unexpectedly, CITIC 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 CITIC Resources will offset losses from the drop in CITIC Resources' long position.| Interra Copper vs. Liontown Resources Limited | Interra Copper vs. ATT Inc | Interra Copper vs. Merck Company | Interra Copper vs. Walt Disney |
| CITIC Resources vs. Sherritt International | CITIC Resources vs. Metals X Limited | CITIC Resources vs. Interra Copper Corp | CITIC Resources vs. Anglo American PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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