Correlation Between Copperbank Resources and AlphaTime Acquisition

Can any of the company-specific risk be diversified away by investing in both Copperbank Resources and AlphaTime Acquisition 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 Copperbank Resources and AlphaTime Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Copperbank Resources Corp and AlphaTime Acquisition Corp, you can compare the effects of market volatilities on Copperbank Resources and AlphaTime Acquisition 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 Copperbank Resources with a short position of AlphaTime Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and AlphaTime Acquisition.

Diversification Opportunities for Copperbank Resources and AlphaTime Acquisition

-0.47

Correlation Coefficient

Copperbank Resources  AlphaTime Acquisition

Very good diversification

The 3 months correlation between Copperbank and AlphaTime is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp and AlphaTime Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaTime Acquisition and Copperbank 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 Copperbank Resources Corp are associated (or correlated) with AlphaTime Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaTime Acquisition has no effect on the direction of Copperbank Resources i.e., Copperbank Resources and AlphaTime Acquisition go up and down completely randomly.

Pair Corralation between Copperbank Resources and AlphaTime Acquisition

Assuming the 90 days horizon Copperbank Resources Corp is expected to under-perform the AlphaTime Acquisition. But the otc stock apears to be less risky and, when comparing its historical volatility, Copperbank Resources Corp is 8.72 times less risky than AlphaTime Acquisition. The otc stock trades about -0.03 of its potential returns per unit of risk. The AlphaTime Acquisition Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  14.00  in AlphaTime Acquisition Corp on October 26, 2024 and sell it today you would earn a total of  0.00  from holding AlphaTime Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	55.56%
Values	Daily Returns

Copperbank Resources Corp  vs.  AlphaTime Acquisition Corp

Copperbank Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Copperbank Resources Corp 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 forward-looking signals remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AlphaTime Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AlphaTime Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Copperbank Resources and AlphaTime Acquisition

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

The idea behind Copperbank Resources Corp and AlphaTime Acquisition 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 the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.