Correlation Between Mako Mining and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Marimaca 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 Mako Mining and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Marimaca Copper Corp, you can compare the effects of market volatilities on Mako Mining and Marimaca 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 Mako Mining with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Marimaca Copper.
Diversification Opportunities for Mako Mining and Marimaca Copper
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mako and Marimaca is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Mako Mining 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 Mako Mining Corp are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Mako Mining i.e., Mako Mining and Marimaca Copper go up and down completely randomly.
Pair Corralation between Mako Mining and Marimaca Copper
Assuming the 90 days horizon Mako Mining Corp is expected to generate 0.92 times more return on investment than Marimaca Copper. However, Mako Mining Corp is 1.09 times less risky than Marimaca Copper. It trades about 0.04 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.01 per unit of risk. If you would invest 378.00 in Mako Mining Corp on December 1, 2024 and sell it today you would earn a total of 5.00 from holding Mako Mining Corp or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Marimaca Copper Corp
Performance |
| Timeline |
| Mako Mining Corp |
| Marimaca Copper Corp |
Mako Mining and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Marimaca Copper
The main advantage of trading using opposite Mako Mining and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Marimaca 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Arizona Sonoran Copper | Marimaca Copper vs. Solaris Resources |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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