Correlation Between Marimaca Copper and 456837AV5

Can any of the company-specific risk be diversified away by investing in both Marimaca Copper and 456837AV5 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 456837AV5 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 ING GROEP NV, you can compare the effects of market volatilities on Marimaca Copper and 456837AV5 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 456837AV5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and 456837AV5.

Diversification Opportunities for Marimaca Copper and 456837AV5

0.12

Correlation Coefficient

Marimaca Copper  456837AV5

Average diversification

The 3 months correlation between Marimaca and 456837AV5 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and ING GROEP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING GROEP NV 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 456837AV5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING GROEP NV has no effect on the direction of Marimaca Copper i.e., Marimaca Copper and 456837AV5 go up and down completely randomly.

Pair Corralation between Marimaca Copper and 456837AV5

Assuming the 90 days horizon Marimaca Copper Corp is expected to generate 14.63 times more return on investment than 456837AV5. However, Marimaca Copper is 14.63 times more volatile than ING GROEP NV. It trades about 0.13 of its potential returns per unit of risk. ING GROEP NV is currently generating about 0.07 per unit of risk. If you would invest  311.00  in Marimaca Copper Corp on December 26, 2024 and sell it today you would earn a total of  80.00  from holding Marimaca Copper Corp or generate 25.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	78.33%
Values	Daily Returns

Marimaca Copper Corp  vs.  ING GROEP NV

Marimaca Copper Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marimaca Copper Corp are ranked lower than 10 (%) 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.

ING GROEP NV

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ING GROEP NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 456837AV5 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Marimaca Copper and 456837AV5

The main advantage of trading using opposite Marimaca Copper and 456837AV5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper position performs unexpectedly, 456837AV5 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 456837AV5 will offset losses from the drop in 456837AV5's long position.

The idea behind Marimaca Copper Corp and ING GROEP NV 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..