Correlation Between Surge Copper and Group Ten
Can any of the company-specific risk be diversified away by investing in both Surge Copper and Group Ten 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 Group Ten 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 Group Ten Metals, you can compare the effects of market volatilities on Surge Copper and Group Ten 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 Group Ten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Copper and Group Ten.
Diversification Opportunities for Surge Copper and Group Ten
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surge and Group is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Surge Copper Corp and Group Ten Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Ten Metals 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 Group Ten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Ten Metals has no effect on the direction of Surge Copper i.e., Surge Copper and Group Ten go up and down completely randomly.
Pair Corralation between Surge Copper and Group Ten
Assuming the 90 days horizon Surge Copper Corp is expected to generate 0.84 times more return on investment than Group Ten. However, Surge Copper Corp is 1.2 times less risky than Group Ten. It trades about -0.06 of its potential returns per unit of risk. Group Ten Metals is currently generating about -0.14 per unit of risk. If you would invest 7.73 in Surge Copper Corp on September 1, 2024 and sell it today you would lose (0.84) from holding Surge Copper Corp or give up 10.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surge Copper Corp vs. Group Ten Metals
Performance |
| Timeline |
| Surge Copper Corp |
| Group Ten Metals |
Surge Copper and Group Ten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surge Copper and Group Ten
The main advantage of trading using opposite Surge Copper and Group Ten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surge Copper position performs unexpectedly, Group Ten 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 Group Ten will offset losses from the drop in Group Ten's long position.| Surge Copper vs. Pampa Metals | Surge Copper vs. Progressive Planet Solutions | Surge Copper vs. Searchlight Resources | Surge Copper vs. Durango Resources |
| Group Ten vs. Ascendant Resources | Group Ten vs. Atico Mining | Group Ten vs. Prime Mining Corp | Group Ten vs. Wallbridge Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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