Correlation Between Kodiak Copper and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and Marimaca Copper 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 Kodiak Copper and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Copper Corp and Marimaca Copper Corp, you can compare the effects of market volatilities on Kodiak Copper and Marimaca Copper 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 Kodiak Copper with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and Marimaca Copper.
Diversification Opportunities for Kodiak Copper and Marimaca Copper
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kodiak and Marimaca is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Kodiak 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 Kodiak Copper Corp are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and Marimaca Copper go up and down completely randomly.
Pair Corralation between Kodiak Copper and Marimaca Copper
Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the Marimaca Copper. But the stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 1.69 times less risky than Marimaca Copper. The stock trades about -0.31 of its potential returns per unit of risk. The Marimaca Copper Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 416.00 in Marimaca Copper Corp on September 1, 2024 and sell it today you would earn a total of 62.00 from holding Marimaca Copper Corp or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kodiak Copper Corp vs. Marimaca Copper Corp
Performance |
| Timeline |
| Kodiak Copper Corp |
| Marimaca Copper Corp |
Kodiak Copper and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and Marimaca Copper
The main advantage of trading using opposite Kodiak Copper and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Kodiak Copper vs. Fireweed Zinc | Kodiak Copper vs. Redishred Capital Corp | Kodiak Copper vs. Surge Copper Corp | Kodiak Copper vs. Blackrock Silver Corp |
| Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Dore Copper Mining | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Arizona Sonoran Copper |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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