Correlation Between IShares Canadian and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Marimaca 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 IShares Canadian and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Canadian HYBrid and Marimaca Copper Corp, you can compare the effects of market volatilities on IShares Canadian and Marimaca 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 IShares Canadian with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Marimaca Copper.
Diversification Opportunities for IShares Canadian and Marimaca Copper
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Marimaca is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and IShares Canadian 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 iShares Canadian HYBrid are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of IShares Canadian i.e., IShares Canadian and Marimaca Copper go up and down completely randomly.
Pair Corralation between IShares Canadian and Marimaca Copper
Assuming the 90 days trading horizon IShares Canadian is expected to generate 1.98 times less return on investment than Marimaca Copper. But when comparing it to its historical volatility, iShares Canadian HYBrid is 6.94 times less risky than Marimaca Copper. It trades about 0.11 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Marimaca Copper Corp on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Marimaca Copper Corp or generate 20.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Marimaca Copper Corp
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Marimaca Copper Corp |
IShares Canadian and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Marimaca Copper
The main advantage of trading using opposite IShares Canadian and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Marimaca 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
| Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Dore Copper Mining | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Arizona Sonoran Copper |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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