Correlation Between Alta Copper and Compania Minera

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

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

Diversification Opportunities for Alta Copper and Compania Minera

-0.01

Correlation Coefficient

Alta Copper  Compania Minera

Good diversification

The 3 months correlation between Alta and Compania is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Alta Copper Corp and Compania Minera Atacocha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Atacocha and Alta 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 Alta Copper Corp are associated (or correlated) with Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Atacocha has no effect on the direction of Alta Copper i.e., Alta Copper and Compania Minera go up and down completely randomly.

Pair Corralation between Alta Copper and Compania Minera

Assuming the 90 days trading horizon Alta Copper is expected to generate 7.38 times less return on investment than Compania Minera. But when comparing it to its historical volatility, Alta Copper Corp is 2.39 times less risky than Compania Minera. It trades about 0.12 of its potential returns per unit of risk. Compania Minera Atacocha is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  7.20  in Compania Minera Atacocha on July 26, 2025 and sell it today you would earn a total of  4.80  from holding Compania Minera Atacocha or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

Alta Copper Corp  vs.  Compania Minera Atacocha

Alta Copper Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Alta Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Compania Minera Atacocha

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Compania Minera Atacocha are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Compania Minera exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alta Copper and Compania Minera

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

The idea behind Alta Copper Corp and Compania Minera Atacocha 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.