Correlation Between Aranjin Resources and Freeport McMoran
Can any of the company-specific risk be diversified away by investing in both Aranjin Resources and Freeport McMoran 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 Aranjin Resources and Freeport McMoran into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aranjin Resources and Freeport McMoran Copper Gold, you can compare the effects of market volatilities on Aranjin Resources and Freeport McMoran 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 Aranjin Resources with a short position of Freeport McMoran. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aranjin Resources and Freeport McMoran.
Diversification Opportunities for Aranjin Resources and Freeport McMoran
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aranjin and Freeport is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aranjin Resources and Freeport McMoran Copper Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeport McMoran Copper and Aranjin Resources 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 Aranjin Resources are associated (or correlated) with Freeport McMoran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeport McMoran Copper has no effect on the direction of Aranjin Resources i.e., Aranjin Resources and Freeport McMoran go up and down completely randomly.
Pair Corralation between Aranjin Resources and Freeport McMoran
Assuming the 90 days horizon Aranjin Resources is expected to under-perform the Freeport McMoran. In addition to that, Aranjin Resources is 6.7 times more volatile than Freeport McMoran Copper Gold. It trades about -0.22 of its total potential returns per unit of risk. Freeport McMoran Copper Gold is currently generating about 0.25 per unit of volatility. If you would invest 4,460 in Freeport McMoran Copper Gold on January 26, 2024 and sell it today you would earn a total of 364.00 from holding Freeport McMoran Copper Gold or generate 8.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Aranjin Resources vs. Freeport McMoran Copper Gold
Performance |
Timeline |
Aranjin Resources |
Freeport McMoran Copper |
Aranjin Resources and Freeport McMoran Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aranjin Resources and Freeport McMoran
The main advantage of trading using opposite Aranjin Resources and Freeport McMoran positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aranjin Resources position performs unexpectedly, Freeport McMoran 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 Freeport McMoran will offset losses from the drop in Freeport McMoran's long position.Aranjin Resources vs. Imperial Metals | Aranjin Resources vs. Bell Copper | Aranjin Resources vs. Copper Fox Metals | Aranjin Resources vs. Arizona Sonoran Copper |
Freeport McMoran vs. Ero Copper Corp | Freeport McMoran vs. Taseko Mines | Freeport McMoran vs. Metals Acquisition Limited | Freeport McMoran vs. Hecla Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |