Correlation Between CopAur Minerals and Blue Moon

Can any of the company-specific risk be diversified away by investing in both CopAur Minerals and Blue Moon 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 CopAur Minerals and Blue Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CopAur Minerals and Blue Moon Metals, you can compare the effects of market volatilities on CopAur Minerals and Blue Moon 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 CopAur Minerals with a short position of Blue Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CopAur Minerals and Blue Moon.

Diversification Opportunities for CopAur Minerals and Blue Moon

-0.42

Correlation Coefficient

CopAur Minerals  Blue Moon

Very good diversification

The 3 months correlation between CopAur and Blue is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CopAur Minerals and Blue Moon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Moon Metals and CopAur Minerals 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 CopAur Minerals are associated (or correlated) with Blue Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Moon Metals has no effect on the direction of CopAur Minerals i.e., CopAur Minerals and Blue Moon go up and down completely randomly.

Pair Corralation between CopAur Minerals and Blue Moon

Assuming the 90 days horizon CopAur Minerals is expected to under-perform the Blue Moon. In addition to that, CopAur Minerals is 1.85 times more volatile than Blue Moon Metals. It trades about -0.03 of its total potential returns per unit of risk. Blue Moon Metals is currently generating about 0.1 per unit of volatility. If you would invest  20.00  in Blue Moon Metals on September 21, 2024 and sell it today you would earn a total of  5.00  from holding Blue Moon Metals or generate 25.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

CopAur Minerals  vs.  Blue Moon Metals

CopAur Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CopAur Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Blue Moon Metals

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Moon Metals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Blue Moon reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CopAur Minerals and Blue Moon

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

The idea behind CopAur Minerals and Blue Moon Metals 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.