Correlation Between Marimaca Copper and Lycos Energy
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Lycos Energy 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 Lycos Energy 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 Lycos Energy, you can compare the effects of market volatilities on Marimaca Copper and Lycos Energy 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 Lycos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Lycos Energy.
Diversification Opportunities for Marimaca Copper and Lycos Energy
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marimaca and Lycos is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Lycos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lycos Energy 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 Lycos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lycos Energy has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Lycos Energy go up and down completely randomly.
Pair Corralation between Marimaca Copper and Lycos Energy
Assuming the 90 days trading horizon Marimaca Copper Corp is expected to generate 1.19 times more return on investment than Lycos Energy. However, Marimaca Copper is 1.19 times more volatile than Lycos Energy. It trades about 0.08 of its potential returns per unit of risk. Lycos Energy is currently generating about 0.06 per unit of risk. If you would invest 455.00 in Marimaca Copper Corp on September 5, 2024 and sell it today you would earn a total of 25.00 from holding Marimaca Copper Corp or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marimaca Copper Corp vs. Lycos Energy
Performance |
| Timeline |
| Marimaca Copper Corp |
| Lycos Energy |
Marimaca Copper and Lycos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Lycos Energy
The main advantage of trading using opposite Marimaca Copper and Lycos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Lycos Energy 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 Lycos Energy will offset losses from the drop in Lycos Energy's long position.| Marimaca Copper vs. First Majestic Silver | Marimaca Copper vs. Ivanhoe Energy | Marimaca Copper vs. Orezone Gold Corp | Marimaca Copper vs. Faraday Copper Corp |
| Lycos Energy vs. Profound Medical Corp | Lycos Energy vs. Brookfield Office Properties | Lycos Energy vs. Marimaca Copper Corp | Lycos Energy vs. QC Copper and |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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