Correlation Between Marimaca Copper and Sanatana Resources
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Sanatana Resources 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 Sanatana Resources 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 Sanatana Resources, you can compare the effects of market volatilities on Marimaca Copper and Sanatana Resources 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 Sanatana Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Sanatana Resources.
Diversification Opportunities for Marimaca Copper and Sanatana Resources
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marimaca and Sanatana is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Sanatana Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanatana 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 Sanatana Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanatana Resources has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Sanatana Resources go up and down completely randomly.
Pair Corralation between Marimaca Copper and Sanatana Resources
Assuming the 90 days trading horizon Marimaca Copper is expected to generate 46.44 times less return on investment than Sanatana Resources. But when comparing it to its historical volatility, Marimaca Copper Corp is 53.88 times less risky than Sanatana Resources. It trades about 0.23 of its potential returns per unit of risk. Sanatana Resources is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Sanatana Resources on October 20, 2024 and sell it today you would lose (2.00) from holding Sanatana Resources or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Marimaca Copper Corp vs. Sanatana Resources
Performance |
| Timeline |
| Marimaca Copper Corp |
| Sanatana Resources |
Marimaca Copper and Sanatana Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Sanatana Resources
The main advantage of trading using opposite Marimaca Copper and Sanatana Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Sanatana Resources 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 Sanatana Resources will offset losses from the drop in Sanatana Resources' 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 |
| Sanatana Resources vs. Q Gold Resources | Sanatana Resources vs. Rainy Mountain Royalty | Sanatana Resources vs. Plato Gold Corp | Sanatana Resources vs. Gunpoint Exploration |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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