Correlation Between Capitan Mining and Fabled Copper

Can any of the company-specific risk be diversified away by investing in both Capitan Mining and Fabled 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 Capitan Mining and Fabled Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capitan Mining and Fabled Copper Corp, you can compare the effects of market volatilities on Capitan Mining and Fabled 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 Capitan Mining with a short position of Fabled Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitan Mining and Fabled Copper.

Diversification Opportunities for Capitan Mining and Fabled Copper

0.0

Correlation Coefficient

Capitan Mining  Fabled Copper

Pay attention - limited upside

The 3 months correlation between Capitan and Fabled is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capitan Mining and Fabled Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabled Copper Corp and Capitan Mining 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 Capitan Mining are associated (or correlated) with Fabled Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabled Copper Corp has no effect on the direction of Capitan Mining i.e., Capitan Mining and Fabled Copper go up and down completely randomly.

Pair Corralation between Capitan Mining and Fabled Copper

If you would invest  13.00  in Capitan Mining on September 4, 2024 and sell it today you would earn a total of  12.00  from holding Capitan Mining or generate 92.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Capitan Mining  vs.  Fabled Copper Corp

Capitan Mining

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Capitan Mining are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Capitan Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Fabled Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fabled Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Fabled Copper is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Capitan Mining and Fabled Copper

The main advantage of trading using opposite Capitan Mining and Fabled Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitan Mining position performs unexpectedly, Fabled 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 Fabled Copper will offset losses from the drop in Fabled Copper's long position.

The idea behind Capitan Mining and Fabled Copper Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.