Correlation Between Interra Copper and Prime Meridian
Can any of the company-specific risk be diversified away by investing in both Interra Copper and Prime Meridian 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 Prime Meridian 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 Prime Meridian Resources, you can compare the effects of market volatilities on Interra Copper and Prime Meridian 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 Prime Meridian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interra Copper and Prime Meridian.
Diversification Opportunities for Interra Copper and Prime Meridian
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Interra and Prime is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Interra Copper Corp and Prime Meridian Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Meridian 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 Prime Meridian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Meridian Resources has no effect on the direction of Interra Copper i.e., Interra Copper and Prime Meridian go up and down completely randomly.
Pair Corralation between Interra Copper and Prime Meridian
If you would invest 5.55 in Interra Copper Corp on November 2, 2024 and sell it today you would lose (0.02) from holding Interra Copper Corp or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Interra Copper Corp vs. Prime Meridian Resources
Performance |
| Timeline |
| Interra Copper Corp |
| Prime Meridian Resources |
Interra Copper and Prime Meridian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interra Copper and Prime Meridian
The main advantage of trading using opposite Interra Copper and Prime Meridian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interra Copper position performs unexpectedly, Prime Meridian 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 Prime Meridian will offset losses from the drop in Prime Meridian's 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 |
| Prime Meridian vs. Macmahon Holdings Limited | Prime Meridian vs. Rokmaster Resources Corp | Prime Meridian vs. Hudson Resources | Prime Meridian 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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