Correlation Between Kutcho Copper and Mason Graphite

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

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

Diversification Opportunities for Kutcho Copper and Mason Graphite

0.77

Correlation Coefficient

Kutcho Copper  Mason Graphite

Poor diversification

The 3 months correlation between Kutcho and Mason is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kutcho Copper Corp and Mason Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Graphite and Kutcho 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 Kutcho Copper Corp are associated (or correlated) with Mason Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Graphite has no effect on the direction of Kutcho Copper i.e., Kutcho Copper and Mason Graphite go up and down completely randomly.

Pair Corralation between Kutcho Copper and Mason Graphite

Assuming the 90 days horizon Kutcho Copper Corp is expected to generate 0.96 times more return on investment than Mason Graphite. However, Kutcho Copper Corp is 1.04 times less risky than Mason Graphite. It trades about 0.0 of its potential returns per unit of risk. Mason Graphite is currently generating about -0.03 per unit of risk. If you would invest  7.77  in Kutcho Copper Corp on September 12, 2024 and sell it today you would lose (1.14) from holding Kutcho Copper Corp or give up 14.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Kutcho Copper Corp  vs.  Mason Graphite

Kutcho Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Mason Graphite

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mason Graphite has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Kutcho Copper and Mason Graphite

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

The idea behind Kutcho Copper Corp and Mason Graphite 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..