Correlation Between POSCO Holdings and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings 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 POSCO Holdings and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Marimaca Copper Corp, you can compare the effects of market volatilities on POSCO Holdings 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 POSCO Holdings with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Marimaca Copper.
Diversification Opportunities for POSCO Holdings and Marimaca Copper
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POSCO and Marimaca is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings 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 POSCO Holdings 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 POSCO Holdings 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 POSCO Holdings i.e., POSCO Holdings and Marimaca Copper go up and down completely randomly.
Pair Corralation between POSCO Holdings and Marimaca Copper
Considering the 90-day investment horizon POSCO Holdings is expected to generate 1.22 times less return on investment than Marimaca Copper. But when comparing it to its historical volatility, POSCO Holdings is 2.17 times less risky than Marimaca Copper. It trades about 0.15 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 368.00 in Marimaca Copper Corp on November 3, 2024 and sell it today you would earn a total of 18.00 from holding Marimaca Copper Corp or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. Marimaca Copper Corp
Performance |
| Timeline |
| POSCO Holdings |
| Marimaca Copper Corp |
POSCO Holdings and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Marimaca Copper
The main advantage of trading using opposite POSCO Holdings and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings 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.| POSCO Holdings vs. Olympic Steel | POSCO Holdings vs. Outokumpu Oyj ADR | POSCO Holdings vs. Ternium SA ADR | POSCO Holdings vs. Steel Dynamics |
| Marimaca Copper vs. NetEase | Marimaca Copper vs. Dave Busters Entertainment | Marimaca Copper vs. National CineMedia | Marimaca Copper vs. Playtika Holding Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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