Correlation Between Arena Minerals and Culpeo Minerals

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

By analyzing existing cross correlation between Arena Minerals and Culpeo Minerals Limited, you can compare the effects of market volatilities on Arena Minerals and Culpeo 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 Arena Minerals with a short position of Culpeo Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arena Minerals and Culpeo Minerals.

Diversification Opportunities for Arena Minerals and Culpeo Minerals

0.0

Correlation Coefficient

Arena Minerals  Culpeo Minerals

Pay attention - limited upside

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

Pair Corralation between Arena Minerals and Culpeo Minerals

If you would invest  7.00  in Culpeo Minerals Limited on February 15, 2024 and sell it today you would earn a total of  0.00  from holding Culpeo Minerals Limited or generate 0.0% return on investment over 90 days.

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

Arena Minerals  vs.  Culpeo Minerals Limited

Arena Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Culpeo Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Arena Minerals and Culpeo Minerals

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

The idea behind Arena Minerals and Culpeo Minerals Limited 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..