Correlation Between Cheetah Net and Marimaca Copper

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

By analyzing existing cross correlation between Cheetah Net Supply and Marimaca Copper Corp, you can compare the effects of market volatilities on Cheetah Net and Marimaca 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 Cheetah Net with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Net and Marimaca Copper.

Diversification Opportunities for Cheetah Net and Marimaca Copper

-0.41

Correlation Coefficient

Cheetah Net  Marimaca Copper

Very good diversification

The 3 months correlation between Cheetah and Marimaca is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Net Supply and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Cheetah Net 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 Cheetah Net Supply are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Cheetah Net i.e., Cheetah Net and Marimaca Copper go up and down completely randomly.

Pair Corralation between Cheetah Net and Marimaca Copper

Given the investment horizon of 90 days Cheetah Net Supply is expected to generate 7.31 times more return on investment than Marimaca Copper. However, Cheetah Net is 7.31 times more volatile than Marimaca Copper Corp. It trades about 0.05 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.1 per unit of risk. If you would invest  336.00  in Cheetah Net Supply on October 10, 2024 and sell it today you would lose (48.00) from holding Cheetah Net Supply or give up 14.29% of portfolio value over 90 days.

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

Cheetah Net Supply  vs.  Marimaca Copper Corp

Cheetah Net Supply

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cheetah Net Supply are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cheetah Net unveiled solid returns over the last few months and may actually be approaching a breakup point.

Marimaca Copper Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marimaca Copper Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Marimaca Copper reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cheetah Net and Marimaca Copper

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

The idea behind Cheetah Net Supply and Marimaca 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.