Correlation Between Interra Copper and Saint Jean
Can any of the company-specific risk be diversified away by investing in both Interra Copper and Saint Jean 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 Saint Jean 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 Saint Jean Carbon, you can compare the effects of market volatilities on Interra Copper and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interra Copper and Saint Jean.
Diversification Opportunities for Interra Copper and Saint Jean
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Interra and Saint is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Interra Copper Corp and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of Interra Copper i.e., Interra Copper and Saint Jean go up and down completely randomly.
Pair Corralation between Interra Copper and Saint Jean
Assuming the 90 days horizon Interra Copper is expected to generate 1.71 times less return on investment than Saint Jean. But when comparing it to its historical volatility, Interra Copper Corp is 1.51 times less risky than Saint Jean. It trades about 0.05 of its potential returns per unit of risk. Saint Jean Carbon is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.10 in Saint Jean Carbon on November 28, 2024 and sell it today you would lose (1.00) from holding Saint Jean Carbon or give up 32.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interra Copper Corp vs. Saint Jean Carbon
Performance |
| Timeline |
| Interra Copper Corp |
| Saint Jean Carbon |
Interra Copper and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interra Copper and Saint Jean
The main advantage of trading using opposite Interra Copper and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interra Copper position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean'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 |
| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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