Correlation Between Cascadero Copper and AMPL

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

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

Diversification Opportunities for Cascadero Copper and AMPL

-0.4

Correlation Coefficient

Cascadero Copper  AMPL

Very good diversification

The 3 months correlation between Cascadero and AMPL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cascadero Copper and AMPL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPL and Cascadero 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 Cascadero Copper are associated (or correlated) with AMPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPL has no effect on the direction of Cascadero Copper i.e., Cascadero Copper and AMPL go up and down completely randomly.

Pair Corralation between Cascadero Copper and AMPL

Assuming the 90 days horizon Cascadero Copper is expected to generate 3.32 times more return on investment than AMPL. However, Cascadero Copper is 3.32 times more volatile than AMPL. It trades about 0.1 of its potential returns per unit of risk. AMPL is currently generating about 0.06 per unit of risk. If you would invest  1.00  in Cascadero Copper on May 14, 2025 and sell it today you would lose (0.04) from holding Cascadero Copper or give up 4.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Cascadero Copper  vs.  AMPL

Cascadero Copper

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cascadero Copper are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly sluggish fundamental indicators, Cascadero Copper reported solid returns over the last few months and may actually be approaching a breakup point.

AMPL

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in AMPL are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, AMPL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cascadero Copper and AMPL

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

The idea behind Cascadero Copper and AMPL 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.