Correlation Between Marimaca Copper and Lion One
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Marimaca Copper and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Lion One.
Diversification Opportunities for Marimaca Copper and Lion One
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marimaca and Lion is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and Lion One go up and down completely randomly.
Pair Corralation between Marimaca Copper and Lion One
Assuming the 90 days trading horizon Marimaca Copper is expected to generate 24.04 times less return on investment than Lion One. But when comparing it to its historical volatility, Marimaca Copper Corp is 3.1 times less risky than Lion One. It trades about 0.01 of its potential returns per unit of risk. Lion One Metals is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Lion One Metals on December 29, 2024 and sell it today you would earn a total of 9.00 from holding Lion One Metals or generate 39.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Marimaca Copper Corp vs. Lion One Metals
Performance |
Timeline |
Marimaca Copper Corp |
Lion One Metals |
Marimaca Copper and Lion One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marimaca Copper and Lion One
The main advantage of trading using opposite Marimaca Copper and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Arizona Sonoran Copper | Marimaca Copper vs. Solaris Resources |
Check out your portfolio center.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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
CEOs Directory Screen CEOs from public companies around the world | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |