Correlation Between Libero Copper and Kodiak Copper

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

Diversification Opportunities for Libero Copper and Kodiak Copper

-0.79

Correlation Coefficient

Libero Copper  Kodiak Copper

Pay attention - limited upside

The 3 months correlation between Libero and Kodiak is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Libero Copper Corp and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp 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 Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Libero Copper i.e., Libero Copper and Kodiak Copper go up and down completely randomly.

Pair Corralation between Libero Copper and Kodiak Copper

Assuming the 90 days horizon Libero Copper Corp is expected to under-perform the Kodiak Copper. In addition to that, Libero Copper is 1.33 times more volatile than Kodiak Copper Corp. It trades about -0.08 of its total potential returns per unit of risk. Kodiak Copper Corp is currently generating about 0.15 per unit of volatility. If you would invest  36.00  in Kodiak Copper Corp on December 29, 2024 and sell it today you would earn a total of  14.00  from holding Kodiak Copper Corp or generate 38.89% return on investment over 90 days.

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

Libero Copper Corp  vs.  Kodiak Copper Corp

Libero Copper Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Libero Copper Corp 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 fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Kodiak Copper Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kodiak Copper Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kodiak Copper showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Libero Copper and Kodiak Copper

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

The idea behind Libero Copper Corp and Kodiak 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.