Correlation Between Marimaca Copper and Computer Modelling

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Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Computer Modelling 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 Marimaca Copper and Computer Modelling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marimaca Copper Corp and Computer Modelling Group, you can compare the effects of market volatilities on Marimaca Copper and Computer Modelling 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 Marimaca Copper with a short position of Computer Modelling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Computer Modelling.

Diversification Opportunities for Marimaca Copper and Computer Modelling

MarimacaComputerDiversified AwayMarimacaComputerDiversified Away100%
-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Marimaca and Computer is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Computer Modelling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Modelling and Marimaca 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 Marimaca Copper Corp are associated (or correlated) with Computer Modelling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Modelling has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Computer Modelling go up and down completely randomly.

Pair Corralation between Marimaca Copper and Computer Modelling

Assuming the 90 days trading horizon Marimaca Copper Corp is expected to generate 1.28 times more return on investment than Computer Modelling. However, Marimaca Copper is 1.28 times more volatile than Computer Modelling Group. It trades about 0.16 of its potential returns per unit of risk. Computer Modelling Group is currently generating about -0.08 per unit of risk. If you would invest  425.00  in Marimaca Copper Corp on October 28, 2024 and sell it today you would earn a total of  137.00  from holding Marimaca Copper Corp or generate 32.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Marimaca Copper Corp  vs.  Computer Modelling Group

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15MARI CMG
       Timeline  
Marimaca Copper Corp 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Marimaca Copper Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Marimaca Copper displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan4.555.5
Computer Modelling 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Computer Modelling Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan9.51010.51111.51212.5

Marimaca Copper and Computer Modelling Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.49-7.1-4.72-2.340.02.525.097.6510.22 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15MARI CMG
       Returns  

Pair Trading with Marimaca Copper and Computer Modelling

The main advantage of trading using opposite Marimaca Copper and Computer Modelling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Computer Modelling 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 Computer Modelling will offset losses from the drop in Computer Modelling's long position.
The idea behind Marimaca Copper Corp and Computer Modelling Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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