Correlation Between Antofagasta PLC and Copper Mountain
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC and Copper Mountain 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 Antofagasta PLC and Copper Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Copper Mountain Mining, you can compare the effects of market volatilities on Antofagasta PLC and Copper Mountain 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 Antofagasta PLC with a short position of Copper Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Copper Mountain.
Diversification Opportunities for Antofagasta PLC and Copper Mountain
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Antofagasta and Copper is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC and Copper Mountain Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Mountain Mining and Antofagasta PLC 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 Antofagasta PLC are associated (or correlated) with Copper Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Mountain Mining has no effect on the direction of Antofagasta PLC i.e., Antofagasta PLC and Copper Mountain go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Copper Mountain
Assuming the 90 days horizon Antofagasta PLC is expected to generate 28.39 times less return on investment than Copper Mountain. But when comparing it to its historical volatility, Antofagasta PLC is 21.43 times less risky than Copper Mountain. It trades about 0.28 of its potential returns per unit of risk. Copper Mountain Mining is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Copper Mountain Mining on January 20, 2024 and sell it today you would earn a total of 13.00 from holding Copper Mountain Mining or generate 650.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antofagasta PLC vs. Copper Mountain Mining
Performance |
| Timeline |
| Antofagasta PLC |
| Copper Mountain Mining |
Antofagasta PLC and Copper Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Copper Mountain
The main advantage of trading using opposite Antofagasta PLC and Copper Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC position performs unexpectedly, Copper Mountain 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 Copper Mountain will offset losses from the drop in Copper Mountain's long position.| Antofagasta PLC vs. Banco Macro SA | Antofagasta PLC vs. GE Aerospace | Antofagasta PLC vs. Remitly Global | Antofagasta PLC vs. Allison Transmission Holdings |
| Copper Mountain vs. Alumina Limited | Copper Mountain vs. HUMANA INC | Copper Mountain vs. Aquagold International | Copper Mountain vs. Spring Valley Acquisition |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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