Correlation Between Marimaca Copper and Enbridge Pref
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By analyzing existing cross correlation between Marimaca Copper Corp and Enbridge Pref 11, you can compare the effects of market volatilities on Marimaca Copper and Enbridge Pref 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 Marimaca Copper with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Enbridge Pref.
Diversification Opportunities for Marimaca Copper and Enbridge Pref
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marimaca and Enbridge is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Enbridge Pref 11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 11 and Marimaca 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 Marimaca Copper Corp are associated (or correlated) with Enbridge Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref 11 has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Enbridge Pref go up and down completely randomly.
Pair Corralation between Marimaca Copper and Enbridge Pref
Assuming the 90 days trading horizon Marimaca Copper Corp is expected to generate 4.02 times more return on investment than Enbridge Pref. However, Marimaca Copper is 4.02 times more volatile than Enbridge Pref 11. It trades about 0.08 of its potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.16 per unit of risk. If you would invest 389.00 in Marimaca Copper Corp on September 25, 2024 and sell it today you would earn a total of 88.00 from holding Marimaca Copper Corp or generate 22.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Marimaca Copper Corp vs. Enbridge Pref 11
Performance |
Timeline |
Marimaca Copper Corp |
Enbridge Pref 11 |
Marimaca Copper and Enbridge Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marimaca Copper and Enbridge Pref
The main advantage of trading using opposite Marimaca Copper and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Enbridge Pref 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 Enbridge Pref will offset losses from the drop in Enbridge Pref's long position.Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Dore Copper Mining | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Arizona Sonoran Copper |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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