Correlation Between NYSE Composite and Copper Mountain
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Copper Mountain 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 NYSE Composite and Copper Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Copper Mountain Mining, you can compare the effects of market volatilities on NYSE Composite and Copper Mountain 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 NYSE Composite with a short position of Copper Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Copper Mountain.
Diversification Opportunities for NYSE Composite and Copper Mountain
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Copper is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Copper Mountain Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Mountain Mining and NYSE Composite 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 NYSE Composite are associated (or correlated) with Copper Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Mountain Mining has no effect on the direction of NYSE Composite i.e., NYSE Composite and Copper Mountain go up and down completely randomly.
Pair Corralation between NYSE Composite and Copper Mountain
Assuming the 90 days trading horizon NYSE Composite is expected to generate 361.72 times less return on investment than Copper Mountain. But when comparing it to its historical volatility, NYSE Composite is 189.39 times less risky than Copper Mountain. It trades about 0.08 of its potential returns per unit of risk. Copper Mountain Mining is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 132.00 in Copper Mountain Mining on September 3, 2024 and sell it today you would lose (112.00) from holding Copper Mountain Mining or give up 84.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.18% |
| Values | Daily Returns |
NYSE Composite vs. Copper Mountain Mining
Performance |
| Timeline |
NYSE Composite and Copper Mountain Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Copper Mountain Mining
Pair trading matchups for Copper Mountain
Pair Trading with NYSE Composite and Copper Mountain
The main advantage of trading using opposite NYSE Composite and Copper Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Copper Mountain 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 Copper Mountain will offset losses from the drop in Copper Mountain's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Copper Mountain vs. Ero Copper Corp | Copper Mountain vs. Copper Fox Metals | Copper Mountain vs. First Quantum Minerals | Copper Mountain vs. Hudbay Minerals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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