Correlation Between Copper Mountain and Almadex Minerals

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

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

Diversification Opportunities for Copper Mountain and Almadex Minerals

0.6

Correlation Coefficient

Copper Mountain  Almadex Minerals

Poor diversification

The 3 months correlation between Copper and Almadex is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Copper Mountain Mining and Almadex Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almadex Minerals and Copper Mountain 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 Copper Mountain Mining are associated (or correlated) with Almadex Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almadex Minerals has no effect on the direction of Copper Mountain i.e., Copper Mountain and Almadex Minerals go up and down completely randomly.

Pair Corralation between Copper Mountain and Almadex Minerals

Assuming the 90 days horizon Copper Mountain is expected to generate 1.38 times less return on investment than Almadex Minerals. But when comparing it to its historical volatility, Copper Mountain Mining is 1.87 times less risky than Almadex Minerals. It trades about 0.1 of its potential returns per unit of risk. Almadex Minerals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Almadex Minerals on July 29, 2025 and sell it today you would earn a total of  3.00  from holding Almadex Minerals or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Copper Mountain Mining  vs.  Almadex Minerals

Copper Mountain Mining

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Copper Mountain Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Copper Mountain reported solid returns over the last few months and may actually be approaching a breakup point.

Almadex Minerals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Almadex Minerals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Almadex Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Copper Mountain and Almadex Minerals

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

The idea behind Copper Mountain Mining and Almadex Minerals 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.