Correlation Between Compania Mina and Alexco Resource

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Compania Mina and Alexco Resource 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 Compania Mina and Alexco Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compania Mina Buenaventura and Alexco Resource Corp, you can compare the effects of market volatilities on Compania Mina and Alexco Resource 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 Compania Mina with a short position of Alexco Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Mina and Alexco Resource.

Diversification Opportunities for Compania Mina and Alexco Resource

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Compania and Alexco is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Compania Mina Buenaventura and Alexco Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexco Resource Corp and Compania Mina 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 Compania Mina Buenaventura are associated (or correlated) with Alexco Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexco Resource Corp has no effect on the direction of Compania Mina i.e., Compania Mina and Alexco Resource go up and down completely randomly.

Pair Corralation between Compania Mina and Alexco Resource

Considering the 90-day investment horizon Compania Mina Buenaventura is expected to under-perform the Alexco Resource. But the stock apears to be less risky and, when comparing its historical volatility, Compania Mina Buenaventura is 1.01 times less risky than Alexco Resource. The stock trades about -0.03 of its potential returns per unit of risk. The Alexco Resource Corp is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  43.00  in Alexco Resource Corp on May 18, 2022 and sell it today you would earn a total of  8.00  from holding Alexco Resource Corp or generate 18.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Compania Mina Buenaventura  vs.  Alexco Resource Corp

 Performance (%) 
       Timeline  
Compania Mina Buenav 
Compania Performance
0 of 100
Over the last 90 days Compania Mina Buenaventura has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Compania Price Channel

Alexco Resource Corp 
Alexco Performance
0 of 100
Over the last 90 days Alexco Resource Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Alexco Price Channel

Compania Mina and Alexco Resource Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Compania Mina and Alexco Resource

The main advantage of trading using opposite Compania Mina and Alexco Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Mina position performs unexpectedly, Alexco Resource 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 Alexco Resource will offset losses from the drop in Alexco Resource's long position.
The idea behind Compania Mina Buenaventura and Alexco Resource Corp 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.
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go