Correlation Between Copperbank Resources and 456837AV5

Can any of the company-specific risk be diversified away by investing in both Copperbank Resources and 456837AV5 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 456837AV5 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 ING GROEP NV, you can compare the effects of market volatilities on Copperbank Resources and 456837AV5 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 456837AV5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and 456837AV5.

Diversification Opportunities for Copperbank Resources and 456837AV5

0.54

Correlation Coefficient

Copperbank Resources  456837AV5

Very weak diversification

The 3 months correlation between Copperbank and 456837AV5 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp and ING GROEP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING GROEP NV 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 456837AV5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING GROEP NV has no effect on the direction of Copperbank Resources i.e., Copperbank Resources and 456837AV5 go up and down completely randomly.

Pair Corralation between Copperbank Resources and 456837AV5

Assuming the 90 days horizon Copperbank Resources Corp is expected to generate 1.21 times more return on investment than 456837AV5. However, Copperbank Resources is 1.21 times more volatile than ING GROEP NV. It trades about -0.2 of its potential returns per unit of risk. ING GROEP NV is currently generating about -0.29 per unit of risk. If you would invest  56.00  in Copperbank Resources Corp on October 9, 2024 and sell it today you would lose (5.00) from holding Copperbank Resources Corp or give up 8.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	63.16%
Values	Daily Returns

Copperbank Resources Corp  vs.  ING GROEP NV

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 fragile 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.

ING GROEP NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ING GROEP NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ING GROEP NV investors.

Pair Trading with Copperbank Resources and 456837AV5

The main advantage of trading using opposite Copperbank Resources and 456837AV5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copperbank Resources position performs unexpectedly, 456837AV5 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 456837AV5 will offset losses from the drop in 456837AV5's long position.

The idea behind Copperbank Resources Corp and ING GROEP NV 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.