Correlation Between Surge Copper and ERAMET SA
Can any of the company-specific risk be diversified away by investing in both Surge Copper and ERAMET SA 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 Surge Copper and ERAMET SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surge Copper Corp and ERAMET SA, you can compare the effects of market volatilities on Surge Copper and ERAMET SA 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 Surge Copper with a short position of ERAMET SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Copper and ERAMET SA.
Diversification Opportunities for Surge Copper and ERAMET SA
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Surge and ERAMET is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Surge Copper Corp and ERAMET SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ERAMET SA and Surge Copper 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 Surge Copper Corp are associated (or correlated) with ERAMET SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ERAMET SA has no effect on the direction of Surge Copper i.e., Surge Copper and ERAMET SA go up and down completely randomly.
Pair Corralation between Surge Copper and ERAMET SA
Assuming the 90 days horizon Surge Copper Corp is expected to generate 1.54 times more return on investment than ERAMET SA. However, Surge Copper is 1.54 times more volatile than ERAMET SA. It trades about -0.07 of its potential returns per unit of risk. ERAMET SA is currently generating about -0.13 per unit of risk. If you would invest 14.00 in Surge Copper Corp on September 1, 2024 and sell it today you would lose (7.11) from holding Surge Copper Corp or give up 50.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Surge Copper Corp vs. ERAMET SA
Performance |
| Timeline |
| Surge Copper Corp |
| ERAMET SA |
Surge Copper and ERAMET SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surge Copper and ERAMET SA
The main advantage of trading using opposite Surge Copper and ERAMET SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surge Copper position performs unexpectedly, ERAMET SA 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 ERAMET SA will offset losses from the drop in ERAMET SA's long position.| Surge Copper vs. Pampa Metals | Surge Copper vs. Progressive Planet Solutions | Surge Copper vs. Searchlight Resources | Surge Copper vs. Durango Resources |
| ERAMET SA vs. Iluka Resources Ltd | ERAMET SA vs. Giyani Metals Corp | ERAMET SA vs. IGO Limited | ERAMET SA vs. Grid Metals 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |