Correlation Between Cedar Fair and Marimaca Copper

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

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

Diversification Opportunities for Cedar Fair and Marimaca Copper

-0.56

Correlation Coefficient

Cedar Fair  Marimaca Copper

Excellent diversification

The 3 months correlation between Cedar and Marimaca is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Fair LP and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Cedar Fair 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 Cedar Fair LP are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Cedar Fair i.e., Cedar Fair and Marimaca Copper go up and down completely randomly.

Pair Corralation between Cedar Fair and Marimaca Copper

If you would invest  235.00  in Marimaca Copper Corp on February 6, 2024 and sell it today you would earn a total of  0.00  from holding Marimaca Copper Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	2.33%
Values	Daily Returns

Cedar Fair LP  vs.  Marimaca Copper Corp

Cedar Fair LP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cedar Fair LP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cedar Fair is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Marimaca Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Cedar Fair and Marimaca Copper

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

The idea behind Cedar Fair LP and Marimaca Copper 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.