Correlation Between Marimaca Copper and Abaxx Technologies
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Abaxx Technologies 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 Marimaca Copper and Abaxx Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marimaca Copper Corp and Abaxx Technologies, you can compare the effects of market volatilities on Marimaca Copper and Abaxx Technologies 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 Marimaca Copper with a short position of Abaxx Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Abaxx Technologies.
Diversification Opportunities for Marimaca Copper and Abaxx Technologies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marimaca and Abaxx is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Abaxx Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abaxx Technologies and Marimaca 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 Marimaca Copper Corp are associated (or correlated) with Abaxx Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abaxx Technologies has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Abaxx Technologies go up and down completely randomly.
Pair Corralation between Marimaca Copper and Abaxx Technologies
Assuming the 90 days trading horizon Marimaca Copper Corp is expected to generate 0.64 times more return on investment than Abaxx Technologies. However, Marimaca Copper Corp is 1.57 times less risky than Abaxx Technologies. It trades about 0.29 of its potential returns per unit of risk. Abaxx Technologies is currently generating about 0.01 per unit of risk. If you would invest 514.00 in Marimaca Copper Corp on October 29, 2024 and sell it today you would earn a total of 48.00 from holding Marimaca Copper Corp or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marimaca Copper Corp vs. Abaxx Technologies
Performance |
| Timeline |
| Marimaca Copper Corp |
| Abaxx Technologies |
Marimaca Copper and Abaxx Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Abaxx Technologies
The main advantage of trading using opposite Marimaca Copper and Abaxx Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Abaxx Technologies 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 Abaxx Technologies will offset losses from the drop in Abaxx Technologies' long position.| Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Arizona Sonoran Copper | Marimaca Copper vs. Solaris Resources |
| Abaxx Technologies vs. XXIX Metal Corp | Abaxx Technologies vs. Mako Mining Corp | Abaxx Technologies vs. Financial 15 Split | Abaxx Technologies vs. Computer Modelling Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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