Correlation Between Marimaca Copper and SP TSX

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Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and SP TSX 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 SP TSX 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 SP TSX Composite, you can compare the effects of market volatilities on Marimaca Copper and SP TSX 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 SP TSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and SP TSX.

Diversification Opportunities for Marimaca Copper and SP TSX

0.24

Correlation Coefficient

Marimaca Copper

SP TSX

Modest diversification

The 3 months correlation between Marimaca and GSPTSE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and SP TSX Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP TSX Composite 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 SP TSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP TSX Composite has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and SP TSX go up and down completely randomly.

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Pair Corralation between Marimaca Copper and SP TSX

Assuming the 90 days trading horizon Marimaca Copper Corp is expected to generate 3.45 times more return on investment than SP TSX. However, Marimaca Copper is 3.45 times more volatile than SP TSX Composite. It trades about 0.38 of its potential returns per unit of risk. SP TSX Composite is currently generating about 0.12 per unit of risk. If you would invest 477.00 in Marimaca Copper Corp on October 22, 2024 and sell it today you would earn a total of 71.00 from holding Marimaca Copper Corp or generate 14.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Marimaca Copper Corp vs. SP TSX Composite

Performance

Timeline

Marimaca Copper and SP TSX Volatility Contrast

Predicted Return Density

Returns

Marimaca Copper Corp

Pair trading matchups for Marimaca Copper

	Marimaca Copper vs. Ero Copper Corp
	Marimaca Copper vs. QC Copper and
	Marimaca Copper vs. Arizona Sonoran Copper
	Marimaca Copper vs. Solaris Resources

SP TSX Composite

Pair trading matchups for SP TSX

	SP TSX vs. Plaza Retail REIT
	SP TSX vs. East Side Games
	SP TSX vs. Gamehost
	SP TSX vs. Champion Gaming Group

Pair Trading with Marimaca Copper and SP TSX

The main advantage of trading using opposite Marimaca Copper and SP TSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, SP TSX 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 SP TSX will offset losses from the drop in SP TSX's 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

The idea behind Marimaca Copper Corp and SP TSX Composite pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

	SP TSX vs. Plaza Retail REIT
	SP TSX vs. East Side Games
	SP TSX vs. Gamehost
	SP TSX vs. Champion Gaming Group

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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