Correlation Between KGHM Polska and Capstone Copper
Can any of the company-specific risk be diversified away by investing in both KGHM Polska and Capstone 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 KGHM Polska and Capstone Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGHM Polska Miedz and Capstone Copper Corp, you can compare the effects of market volatilities on KGHM Polska and Capstone 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 KGHM Polska with a short position of Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGHM Polska and Capstone Copper.
Diversification Opportunities for KGHM Polska and Capstone Copper
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between KGHM and Capstone is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding KGHM Polska Miedz and Capstone Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Copper Corp and KGHM Polska 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 KGHM Polska Miedz are associated (or correlated) with Capstone Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Copper Corp has no effect on the direction of KGHM Polska i.e., KGHM Polska and Capstone Copper go up and down completely randomly.
Pair Corralation between KGHM Polska and Capstone Copper
If you would invest 3,889 in KGHM Polska Miedz on August 29, 2024 and sell it today you would earn a total of 0.00 from holding KGHM Polska Miedz or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
KGHM Polska Miedz vs. Capstone Copper Corp
Performance |
| Timeline |
| KGHM Polska Miedz |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Capstone Copper Corp |
KGHM Polska and Capstone Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGHM Polska and Capstone Copper
The main advantage of trading using opposite KGHM Polska and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGHM Polska position performs unexpectedly, Capstone 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 Capstone Copper will offset losses from the drop in Capstone Copper's long position.| KGHM Polska vs. Bell Copper | KGHM Polska vs. Arizona Sonoran Copper | KGHM Polska vs. CopperCorp Resources | KGHM Polska vs. Dor Copper Mining |
| Capstone Copper vs. Hudbay Minerals | Capstone Copper vs. Ero Copper Corp | Capstone Copper vs. Taseko Mines | Capstone Copper vs. CopperCorp Resources |
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.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |