Correlation Between Marimaca Copper and Opus One
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Opus One 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 Opus One 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 Opus One Resources, you can compare the effects of market volatilities on Marimaca Copper and Opus One 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 Opus One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Opus One.
Diversification Opportunities for Marimaca Copper and Opus One
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marimaca and Opus is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Opus One Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opus One Resources 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 Opus One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opus One Resources has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Opus One go up and down completely randomly.
Pair Corralation between Marimaca Copper and Opus One
Assuming the 90 days trading horizon Marimaca Copper is expected to generate 20.06 times less return on investment than Opus One. But when comparing it to its historical volatility, Marimaca Copper Corp is 6.92 times less risky than Opus One. It trades about 0.03 of its potential returns per unit of risk. Opus One Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Opus One Resources on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Opus One Resources or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marimaca Copper Corp vs. Opus One Resources
Performance |
| Timeline |
| Marimaca Copper Corp |
| Opus One Resources |
Marimaca Copper and Opus One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Opus One
The main advantage of trading using opposite Marimaca Copper and Opus One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Opus One 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 Opus One will offset losses from the drop in Opus One's long position.| Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Dore Copper Mining | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Arizona Sonoran Copper |
| Opus One vs. Major Drilling Group | Opus One vs. High Liner Foods | Opus One vs. Computer Modelling Group | Opus One vs. Brookfield Asset Management |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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