Correlation Between Marimaca Copper and IShares SPTSX
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and IShares SPTSX 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 IShares SPTSX 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 iShares SPTSX Capped, you can compare the effects of market volatilities on Marimaca Copper and IShares SPTSX 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 IShares SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and IShares SPTSX.
Diversification Opportunities for Marimaca Copper and IShares SPTSX
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marimaca and IShares is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and iShares SPTSX Capped in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SPTSX Capped 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 IShares SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SPTSX Capped has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and IShares SPTSX go up and down completely randomly.
Pair Corralation between Marimaca Copper and IShares SPTSX
Assuming the 90 days trading horizon Marimaca Copper is expected to generate 1.04 times less return on investment than IShares SPTSX. In addition to that, Marimaca Copper is 1.76 times more volatile than iShares SPTSX Capped. It trades about 0.03 of its total potential returns per unit of risk. iShares SPTSX Capped is currently generating about 0.06 per unit of volatility. If you would invest 1,369 in iShares SPTSX Capped on September 2, 2024 and sell it today you would earn a total of 430.00 from holding iShares SPTSX Capped or generate 31.41% 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. iShares SPTSX Capped
Performance |
| Timeline |
| Marimaca Copper Corp |
| iShares SPTSX Capped |
Marimaca Copper and IShares SPTSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and IShares SPTSX
The main advantage of trading using opposite Marimaca Copper and IShares SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, IShares SPTSX 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 IShares SPTSX will offset losses from the drop in IShares SPTSX'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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