Correlation Between Anglo American and COPAUR MINERALS

Can any of the company-specific risk be diversified away by investing in both Anglo American and COPAUR MINERALS 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 Anglo American and COPAUR MINERALS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anglo American plc and COPAUR MINERALS INC, you can compare the effects of market volatilities on Anglo American and COPAUR MINERALS 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 Anglo American with a short position of COPAUR MINERALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and COPAUR MINERALS.

Diversification Opportunities for Anglo American and COPAUR MINERALS

-0.06

Correlation Coefficient

Anglo American  COPAUR MINERALS

Good diversification

The 3 months correlation between Anglo and COPAUR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American plc and COPAUR MINERALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPAUR MINERALS INC and Anglo American 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 Anglo American plc are associated (or correlated) with COPAUR MINERALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPAUR MINERALS INC has no effect on the direction of Anglo American i.e., Anglo American and COPAUR MINERALS go up and down completely randomly.

Pair Corralation between Anglo American and COPAUR MINERALS

Assuming the 90 days trading horizon Anglo American plc is expected to under-perform the COPAUR MINERALS. But the stock apears to be less risky and, when comparing its historical volatility, Anglo American plc is 3.75 times less risky than COPAUR MINERALS. The stock trades about 0.0 of its potential returns per unit of risk. The COPAUR MINERALS INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  6.16  in COPAUR MINERALS INC on December 23, 2024 and sell it today you would earn a total of  2.24  from holding COPAUR MINERALS INC or generate 36.36% return on investment over 90 days.

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

Anglo American plc  vs.  COPAUR MINERALS INC

Anglo American plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anglo American plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Anglo American is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

COPAUR MINERALS INC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in COPAUR MINERALS INC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, COPAUR MINERALS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anglo American and COPAUR MINERALS

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

The idea behind Anglo American plc and COPAUR MINERALS INC 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.