Correlation Between Amerigo Resources and Jiangxi Copper
Can any of the company-specific risk be diversified away by investing in both Amerigo Resources and Jiangxi Copper 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 Amerigo Resources and Jiangxi Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amerigo Resources and Jiangxi Copper, you can compare the effects of market volatilities on Amerigo Resources and Jiangxi Copper 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 Amerigo Resources with a short position of Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amerigo Resources and Jiangxi Copper.
Diversification Opportunities for Amerigo Resources and Jiangxi Copper
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amerigo and Jiangxi is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Amerigo Resources and Jiangxi Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper and Amerigo 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 Amerigo Resources are associated (or correlated) with Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Amerigo Resources i.e., Amerigo Resources and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Amerigo Resources and Jiangxi Copper
Assuming the 90 days horizon Amerigo Resources is expected to generate 1.34 times less return on investment than Jiangxi Copper. But when comparing it to its historical volatility, Amerigo Resources is 3.02 times less risky than Jiangxi Copper. It trades about 0.07 of its potential returns per unit of risk. Jiangxi Copper is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Jiangxi Copper on December 7, 2024 and sell it today you would lose (8.00) from holding Jiangxi Copper or give up 4.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 25.81% |
Values | Daily Returns |
Amerigo Resources vs. Jiangxi Copper
Performance |
Timeline |
Amerigo Resources |
Jiangxi Copper |
Amerigo Resources and Jiangxi Copper Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amerigo Resources and Jiangxi Copper
The main advantage of trading using opposite Amerigo Resources and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amerigo Resources position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.Amerigo Resources vs. First Quantum Minerals | Amerigo Resources vs. Antofagasta PLC | Amerigo Resources vs. Capstone Copper Corp | Amerigo Resources vs. Copper Mountain Mining |
Jiangxi Copper vs. Hudbay Minerals | Jiangxi Copper vs. Southern Copper | Jiangxi Copper vs. Copper Mountain Mining | Jiangxi Copper vs. Amerigo Resources |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Global Correlations Find global opportunities by holding instruments from different markets |