Correlation Between Libero Copper and Eastfield Resources

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

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

Diversification Opportunities for Libero Copper and Eastfield Resources

0.0

Correlation Coefficient

Libero Copper  Eastfield Resources

Pay attention - limited upside

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

Pair Corralation between Libero Copper and Eastfield Resources

If you would invest  3.00  in Eastfield Resources on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Eastfield Resources or generate 0.0% return on investment over 90 days.

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

Libero Copper Corp  vs.  Eastfield Resources

Libero Copper Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Libero Copper Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Libero Copper showed solid returns over the last few months and may actually be approaching a breakup point.

Eastfield Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eastfield Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Eastfield Resources is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Libero Copper and Eastfield Resources

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

The idea behind Libero Copper Corp and Eastfield Resources 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.