Correlation Between Surge Copper and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Surge Copper and Kodiak 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 Surge Copper and Kodiak Copper 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 Kodiak Copper Corp, you can compare the effects of market volatilities on Surge Copper and Kodiak 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 Surge Copper with a short position of Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Copper and Kodiak Copper.
Diversification Opportunities for Surge Copper and Kodiak Copper
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Surge and Kodiak is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Surge Copper Corp and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp 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 Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Surge Copper i.e., Surge Copper and Kodiak Copper go up and down completely randomly.
Pair Corralation between Surge Copper and Kodiak Copper
Assuming the 90 days trading horizon Surge Copper Corp is expected to under-perform the Kodiak Copper. In addition to that, Surge Copper is 2.86 times more volatile than Kodiak Copper Corp. It trades about -0.03 of its total potential returns per unit of risk. Kodiak Copper Corp is currently generating about 0.26 per unit of volatility. If you would invest 36.00 in Kodiak Copper Corp on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Kodiak Copper Corp or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surge Copper Corp vs. Kodiak Copper Corp
Performance |
| Timeline |
| Surge Copper Corp |
| Kodiak Copper Corp |
Surge Copper and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surge Copper and Kodiak Copper
The main advantage of trading using opposite Surge Copper and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surge Copper position performs unexpectedly, Kodiak 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Surge Copper vs. Kutcho Copper Corp | Surge Copper vs. CANEX Metals | Surge Copper vs. Highland Copper | Surge Copper vs. District Copper Corp |
| Kodiak Copper vs. Fireweed Zinc | Kodiak Copper vs. Redishred Capital Corp | Kodiak Copper vs. Surge Copper Corp | Kodiak Copper vs. Blackrock Silver 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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