Correlation Between Surge Copper and Canada Rare

Can any of the company-specific risk be diversified away by investing in both Surge Copper and Canada Rare 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 Surge Copper and Canada Rare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Surge Copper Corp and Canada Rare Earth, you can compare the effects of market volatilities on Surge Copper and Canada Rare 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 Surge Copper with a short position of Canada Rare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Copper and Canada Rare.

Diversification Opportunities for Surge Copper and Canada Rare

0.0

Correlation Coefficient

Surge Copper  Canada Rare

Pay attention - limited upside

The 3 months correlation between Surge and Canada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Surge Copper Corp and Canada Rare Earth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Rare Earth and Surge 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 Surge Copper Corp are associated (or correlated) with Canada Rare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Rare Earth has no effect on the direction of Surge Copper i.e., Surge Copper and Canada Rare go up and down completely randomly.

Pair Corralation between Surge Copper and Canada Rare

If you would invest  8.00  in Surge Copper Corp on December 29, 2024 and sell it today you would earn a total of  1.54  from holding Surge Copper Corp or generate 19.25% return on investment over 90 days.

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

Surge Copper Corp  vs.  Canada Rare Earth

Surge Copper Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Surge Copper Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Surge Copper reported solid returns over the last few months and may actually be approaching a breakup point.

Canada Rare Earth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canada Rare Earth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Canada Rare is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Surge Copper and Canada Rare

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

The idea behind Surge Copper Corp and Canada Rare Earth 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.