Correlation Between Copper Road and Jamieson Wellness

Can any of the company-specific risk be diversified away by investing in both Copper Road and Jamieson Wellness 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 Copper Road and Jamieson Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Copper Road and Jamieson Wellness

-0.11

Correlation Coefficient

Copper Road  Jamieson Wellness

Good diversification

The 3 months correlation between Copper and Jamieson is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Copper Road Resources and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness and Copper Road 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 Copper Road Resources are associated (or correlated) with Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Copper Road i.e., Copper Road and Jamieson Wellness go up and down completely randomly.

Pair Corralation between Copper Road and Jamieson Wellness

Assuming the 90 days horizon Copper Road Resources is expected to generate 9.02 times more return on investment than Jamieson Wellness. However, Copper Road is 9.02 times more volatile than Jamieson Wellness. It trades about 0.09 of its potential returns per unit of risk. Jamieson Wellness is currently generating about -0.18 per unit of risk. If you would invest  1.50  in Copper Road Resources on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Copper Road Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Copper Road Resources  vs.  Jamieson Wellness

Copper Road Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Copper Road Resources are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Copper Road showed solid returns over the last few months and may actually be approaching a breakup point.

Jamieson Wellness

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jamieson Wellness has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Copper Road and Jamieson Wellness

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

The idea behind Copper Road Resources and Jamieson Wellness 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.