Correlation Between Copperbank Resources and Nevada Copper

Can any of the company-specific risk be diversified away by investing in both Copperbank Resources and Nevada 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 Copperbank Resources and Nevada Copper 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 Nevada Copper Corp, you can compare the effects of market volatilities on Copperbank Resources and Nevada 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 Copperbank Resources with a short position of Nevada Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and Nevada Copper.

Diversification Opportunities for Copperbank Resources and Nevada Copper

0.0

Correlation Coefficient

Copperbank Resources  Nevada Copper

Pay attention - limited upside

The 3 months correlation between Copperbank and Nevada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp and Nevada Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nevada Copper Corp 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 Nevada Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nevada Copper Corp has no effect on the direction of Copperbank Resources i.e., Copperbank Resources and Nevada Copper go up and down completely randomly.

Pair Corralation between Copperbank Resources and Nevada Copper

If you would invest  52.00  in Copperbank Resources Corp on December 30, 2024 and sell it today you would earn a total of  5.00  from holding Copperbank Resources Corp or generate 9.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Copperbank Resources Corp  vs.  Nevada Copper Corp

Copperbank Resources Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Copperbank Resources Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, Copperbank Resources may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Nevada Copper Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nevada Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Nevada Copper is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Copperbank Resources and Nevada Copper

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

The idea behind Copperbank Resources Corp and Nevada Copper 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.