Correlation Between Marimaca Copper and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Copperbank 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 Copperbank 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 Copperbank Resources Corp, you can compare the effects of market volatilities on Marimaca Copper and Copperbank 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 Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Copperbank Resources.
Diversification Opportunities for Marimaca Copper and Copperbank Resources
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marimaca and Copperbank is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources 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 Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Copperbank Resources go up and down completely randomly.
Pair Corralation between Marimaca Copper and Copperbank Resources
Assuming the 90 days horizon Marimaca Copper Corp is expected to generate 0.9 times more return on investment than Copperbank Resources. However, Marimaca Copper Corp is 1.11 times less risky than Copperbank Resources. It trades about 0.08 of its potential returns per unit of risk. Copperbank Resources Corp is currently generating about 0.04 per unit of risk. If you would invest 220.00 in Marimaca Copper Corp on November 9, 2024 and sell it today you would earn a total of 146.00 from holding Marimaca Copper Corp or generate 66.36% 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. Copperbank Resources Corp
Performance |
| Timeline |
| Marimaca Copper Corp |
| Copperbank Resources Corp |
Marimaca Copper and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Copperbank Resources
The main advantage of trading using opposite Marimaca Copper and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Copperbank 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.| Marimaca Copper vs. LB Foster | Marimaca Copper vs. Ryanair Holdings PLC | Marimaca Copper vs. Hafnia Limited | Marimaca Copper vs. Cheche Group Class |
| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Arizona Sonoran Copper | Copperbank Resources vs. CopperCorp Resources | Copperbank Resources vs. Copper Fox Metals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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