Correlation Between Palantir Technologies and Copperbank Resources

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

Diversification Opportunities for Palantir Technologies and Copperbank Resources

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Palantir and Copperbank is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp and Palantir Technologies 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 Palantir Technologies Class are associated (or correlated) with Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and Copperbank Resources go up and down completely randomly.

Pair Corralation between Palantir Technologies and Copperbank Resources

Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 1.03 times more return on investment than Copperbank Resources. However, Palantir Technologies is 1.03 times more volatile than Copperbank Resources Corp. It trades about 0.33 of its potential returns per unit of risk. Copperbank Resources Corp is currently generating about -0.23 per unit of risk. If you would invest  6,435  in Palantir Technologies Class on September 23, 2024 and sell it today you would earn a total of  1,620  from holding Palantir Technologies Class or generate 25.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Palantir Technologies Class  vs.  Copperbank Resources Corp

 Performance 
       Timeline  
Palantir Technologies 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Palantir Technologies Class are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Palantir Technologies reported solid returns over the last few months and may actually be approaching a breakup point.
Copperbank Resources Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Copperbank Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Copperbank Resources is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Palantir Technologies and Copperbank Resources Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Palantir Technologies and Copperbank Resources

The main advantage of trading using opposite Palantir Technologies and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies position performs unexpectedly, Copperbank Resources 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.
The idea behind Palantir Technologies Class and Copperbank Resources 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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