Correlation Between Mineral Res and Interra Copper
Can any of the company-specific risk be diversified away by investing in both Mineral Res and Interra 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 Mineral Res and Interra Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mineral Res and Interra Copper Corp, you can compare the effects of market volatilities on Mineral Res and Interra 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 Mineral Res with a short position of Interra Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mineral Res and Interra Copper.
Diversification Opportunities for Mineral Res and Interra Copper
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mineral and Interra is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mineral Res and Interra Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interra Copper Corp and Mineral Res 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 Mineral Res are associated (or correlated) with Interra Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interra Copper Corp has no effect on the direction of Mineral Res i.e., Mineral Res and Interra Copper go up and down completely randomly.
Pair Corralation between Mineral Res and Interra Copper
Assuming the 90 days horizon Mineral Res is expected to generate 0.46 times more return on investment than Interra Copper. However, Mineral Res is 2.19 times less risky than Interra Copper. It trades about -0.05 of its potential returns per unit of risk. Interra Copper Corp is currently generating about -0.06 per unit of risk. If you would invest 2,465 in Mineral Res on September 13, 2024 and sell it today you would lose (137.00) from holding Mineral Res or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mineral Res vs. Interra Copper Corp
Performance |
| Timeline |
| Mineral Res |
| Interra Copper Corp |
Mineral Res and Interra Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mineral Res and Interra Copper
The main advantage of trading using opposite Mineral Res and Interra Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mineral Res position performs unexpectedly, Interra 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 Interra Copper will offset losses from the drop in Interra Copper's long position.| Mineral Res vs. IGO Limited | Mineral Res vs. Grid Metals Corp | Mineral Res vs. First American Silver | Mineral Res vs. Qubec Nickel Corp |
| Interra Copper vs. Sherritt International | Interra Copper vs. Metals X Limited | Interra Copper vs. Anglo American PLC | Interra Copper vs. ZincX Resources 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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