Correlation Between COPAUR MINERALS and Magna International

Can any of the company-specific risk be diversified away by investing in both COPAUR MINERALS and Magna International 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 Magna International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COPAUR MINERALS INC and Magna International, you can compare the effects of market volatilities on COPAUR MINERALS and Magna International 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 Magna International. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPAUR MINERALS and Magna International.

Diversification Opportunities for COPAUR MINERALS and Magna International

-0.64

Correlation Coefficient

COPAUR MINERALS  Magna International

Excellent diversification

The 3 months correlation between COPAUR and Magna is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding COPAUR MINERALS INC and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International 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 INC are associated (or correlated) with Magna International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna International has no effect on the direction of COPAUR MINERALS i.e., COPAUR MINERALS and Magna International go up and down completely randomly.

Pair Corralation between COPAUR MINERALS and Magna International

Assuming the 90 days trading horizon COPAUR MINERALS INC is expected to under-perform the Magna International. In addition to that, COPAUR MINERALS is 2.68 times more volatile than Magna International. It trades about -0.06 of its total potential returns per unit of risk. Magna International is currently generating about 0.09 per unit of volatility. If you would invest  3,745  in Magna International on September 2, 2024 and sell it today you would earn a total of  475.00  from holding Magna International or generate 12.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

COPAUR MINERALS INC  vs.  Magna International

COPAUR MINERALS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COPAUR MINERALS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental 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.

Magna International

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Magna International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Magna International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COPAUR MINERALS and Magna International

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

The idea behind COPAUR MINERALS INC and Magna International 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.