Correlation Between Nexa Resources and Compania Minera
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By analyzing existing cross correlation between Nexa Resources Peru and Compania Minera Atacocha, you can compare the effects of market volatilities on Nexa Resources and Compania Minera 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 Nexa Resources with a short position of Compania Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexa Resources and Compania Minera.
Diversification Opportunities for Nexa Resources and Compania Minera
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexa and Compania is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nexa Resources Peru and Compania Minera Atacocha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Atacocha and Nexa Resources 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 Nexa Resources Peru are associated (or correlated) with Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Atacocha has no effect on the direction of Nexa Resources i.e., Nexa Resources and Compania Minera go up and down completely randomly.
Pair Corralation between Nexa Resources and Compania Minera
Assuming the 90 days trading horizon Nexa Resources is expected to generate 6.33 times less return on investment than Compania Minera. But when comparing it to its historical volatility, Nexa Resources Peru is 2.07 times less risky than Compania Minera. It trades about 0.01 of its potential returns per unit of risk. Compania Minera Atacocha is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Compania Minera Atacocha on September 12, 2024 and sell it today you would earn a total of 0.60 from holding Compania Minera Atacocha or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.39% |
| Values | Daily Returns |
Nexa Resources Peru vs. Compania Minera Atacocha
Performance |
| Timeline |
| Nexa Resources Peru |
| Compania Minera Atacocha |
Nexa Resources and Compania Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexa Resources and Compania Minera
The main advantage of trading using opposite Nexa Resources and Compania Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexa Resources position performs unexpectedly, Compania Minera 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 Compania Minera will offset losses from the drop in Compania Minera's long position.| Nexa Resources vs. InRetail Peru Corp | Nexa Resources vs. Banco de Credito | Nexa Resources vs. Southern Copper Corp |
| Compania Minera vs. Nexa Resources Peru | Compania Minera vs. Citigroup | Compania Minera vs. Compania de Minas | Compania Minera vs. Compania Minera Poderosa |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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