Correlation Between Copper Mountain and Capstone Copper

Can any of the company-specific risk be diversified away by investing in both Copper Mountain and Capstone 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 Copper Mountain and Capstone Copper 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 Capstone Copper Corp, you can compare the effects of market volatilities on Copper Mountain and Capstone 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 Copper Mountain with a short position of Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper Mountain and Capstone Copper.

Diversification Opportunities for Copper Mountain and Capstone Copper

0.64

Correlation Coefficient

Copper Mountain  Capstone Copper

Poor diversification

The 3 months correlation between Copper and Capstone is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Copper Mountain Mining and Capstone Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Copper Corp 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 Capstone Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Copper Corp has no effect on the direction of Copper Mountain i.e., Copper Mountain and Capstone Copper go up and down completely randomly.

Pair Corralation between Copper Mountain and Capstone Copper

Assuming the 90 days horizon Copper Mountain Mining is expected to generate 3.57 times more return on investment than Capstone Copper. However, Copper Mountain is 3.57 times more volatile than Capstone Copper Corp. It trades about 0.1 of its potential returns per unit of risk. Capstone Copper Corp is currently generating about 0.13 per unit of risk. If you would invest  11.00  in Copper Mountain Mining on April 23, 2025 and sell it today you would earn a total of  4.00  from holding Copper Mountain Mining or generate 36.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Copper Mountain Mining  vs.  Capstone Copper Corp

Copper Mountain Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Copper Mountain Mining are ranked lower than 7 (%) 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.

Capstone Copper Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Copper Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Capstone Copper reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Copper Mountain and Capstone Copper

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

The idea behind Copper Mountain Mining and Capstone 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.