Correlation Between Marimaca Copper and Surge Copper
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Surge Copper 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 Surge Copper 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 Surge Copper Corp, you can compare the effects of market volatilities on Marimaca Copper and Surge Copper 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 Surge Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Surge Copper.
Diversification Opportunities for Marimaca Copper and Surge Copper
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marimaca and Surge is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Surge Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Copper Corp 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 Surge Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Copper Corp has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Surge Copper go up and down completely randomly.
Pair Corralation between Marimaca Copper and Surge Copper
Assuming the 90 days trading horizon Marimaca Copper Corp is expected to generate 0.43 times more return on investment than Surge Copper. However, Marimaca Copper Corp is 2.34 times less risky than Surge Copper. It trades about 0.15 of its potential returns per unit of risk. Surge Copper Corp is currently generating about -0.03 per unit of risk. If you would invest 400.00 in Marimaca Copper Corp on October 24, 2024 and sell it today you would earn a total of 155.00 from holding Marimaca Copper Corp or generate 38.75% 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. Surge Copper Corp
Performance |
| Timeline |
| Marimaca Copper Corp |
| Surge Copper Corp |
Marimaca Copper and Surge Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Surge Copper
The main advantage of trading using opposite Marimaca Copper and Surge Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Surge Copper 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 Surge Copper will offset losses from the drop in Surge Copper'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 |
| Surge Copper vs. Kutcho Copper Corp | Surge Copper vs. CANEX Metals | Surge Copper vs. Highland Copper | Surge Copper vs. District Copper Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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