Correlation Between Marimaca Copper and Aura Minerals
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Aura Minerals 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 Marimaca Copper and Aura Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marimaca Copper Corp and Aura Minerals, you can compare the effects of market volatilities on Marimaca Copper and Aura Minerals 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 Aura Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Aura Minerals.
Diversification Opportunities for Marimaca Copper and Aura Minerals
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marimaca and Aura is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Aura Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Minerals 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 Aura Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Minerals has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Aura Minerals go up and down completely randomly.
Pair Corralation between Marimaca Copper and Aura Minerals
Assuming the 90 days trading horizon Marimaca Copper is expected to generate 2.22 times less return on investment than Aura Minerals. In addition to that, Marimaca Copper is 1.06 times more volatile than Aura Minerals. It trades about 0.06 of its total potential returns per unit of risk. Aura Minerals is currently generating about 0.14 per unit of volatility. If you would invest 881.00 in Aura Minerals on September 13, 2024 and sell it today you would earn a total of 997.00 from holding Aura Minerals or generate 113.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Marimaca Copper Corp vs. Aura Minerals
Performance |
Timeline |
Marimaca Copper Corp |
Aura Minerals |
Marimaca Copper and Aura Minerals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marimaca Copper and Aura Minerals
The main advantage of trading using opposite Marimaca Copper and Aura Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Aura Minerals 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 Aura Minerals will offset losses from the drop in Aura Minerals' long position.Marimaca Copper vs. Arizona Sonoran Copper | Marimaca Copper vs. World Copper | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Dore Copper Mining |
Aura Minerals vs. Arizona Sonoran Copper | Aura Minerals vs. Marimaca Copper Corp | Aura Minerals vs. World Copper | Aura Minerals vs. QC Copper and |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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