Correlation Between Compania Minera and Southern Copper
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By analyzing existing cross correlation between Compania Minera Poderosa and Southern Copper Corp, you can compare the effects of market volatilities on Compania Minera and Southern 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 Compania Minera with a short position of Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Minera and Southern Copper.
Diversification Opportunities for Compania Minera and Southern Copper
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Compania and Southern is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Compania Minera Poderosa and Southern Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Copper Corp and Compania Minera 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 Compania Minera Poderosa are associated (or correlated) with Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper Corp has no effect on the direction of Compania Minera i.e., Compania Minera and Southern Copper go up and down completely randomly.
Pair Corralation between Compania Minera and Southern Copper
Assuming the 90 days trading horizon Compania Minera is expected to generate 84.11 times less return on investment than Southern Copper. In addition to that, Compania Minera is 1.1 times more volatile than Southern Copper Corp. It trades about 0.0 of its total potential returns per unit of risk. Southern Copper Corp is currently generating about 0.06 per unit of volatility. If you would invest 6,000 in Southern Copper Corp on September 12, 2024 and sell it today you would earn a total of 4,380 from holding Southern Copper Corp or generate 73.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.83% |
| Values | Daily Returns |
Compania Minera Poderosa vs. Southern Copper Corp
Performance |
| Timeline |
| Compania Minera Poderosa |
| Southern Copper Corp |
Compania Minera and Southern Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Minera and Southern Copper
The main advantage of trading using opposite Compania Minera and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Minera position performs unexpectedly, Southern 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 Southern Copper will offset losses from the drop in Southern Copper's long position.The idea behind Compania Minera Poderosa and Southern Copper Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Southern Copper vs. Nexa Resources Peru | Southern Copper vs. Citigroup | Southern Copper vs. Compania de Minas | Southern Copper 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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