Correlation Between Scottie Resources and Capstone Copper
Can any of the company-specific risk be diversified away by investing in both Scottie Resources and Capstone 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 Scottie Resources and Capstone Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scottie Resources Corp and Capstone Copper Corp, you can compare the effects of market volatilities on Scottie Resources and Capstone 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 Scottie Resources with a short position of Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scottie Resources and Capstone Copper.
Diversification Opportunities for Scottie Resources and Capstone Copper
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scottie and Capstone is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Scottie Resources Corp and Capstone Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Copper Corp and Scottie 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 Scottie Resources Corp are associated (or correlated) with Capstone Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Copper Corp has no effect on the direction of Scottie Resources i.e., Scottie Resources and Capstone Copper go up and down completely randomly.
Pair Corralation between Scottie Resources and Capstone Copper
Assuming the 90 days horizon Scottie Resources Corp is expected to generate 2.99 times more return on investment than Capstone Copper. However, Scottie Resources is 2.99 times more volatile than Capstone Copper Corp. It trades about 0.09 of its potential returns per unit of risk. Capstone Copper Corp is currently generating about -0.02 per unit of risk. If you would invest 11.00 in Scottie Resources Corp on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Scottie Resources Corp or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scottie Resources Corp vs. Capstone Copper Corp
Performance |
| Timeline |
| Scottie Resources Corp |
| Capstone Copper Corp |
Scottie Resources and Capstone Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scottie Resources and Capstone Copper
The main advantage of trading using opposite Scottie Resources and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scottie Resources position performs unexpectedly, Capstone 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 Capstone Copper will offset losses from the drop in Capstone Copper's long position.| Scottie Resources vs. HUMANA INC | Scottie Resources vs. SCOR PK | Scottie Resources vs. Aquagold International | Scottie Resources vs. Thrivent High Yield |
| Capstone Copper vs. Hudbay Minerals | Capstone Copper vs. Ero Copper Corp | Capstone Copper vs. Taseko Mines | Capstone Copper vs. CopperCorp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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