Correlation Between Capstone Copper and Ivanhoe Mines

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

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

Diversification Opportunities for Capstone Copper and Ivanhoe Mines

-0.68

Correlation Coefficient

Capstone Copper  Ivanhoe Mines

Excellent diversification

The 3 months correlation between Capstone and Ivanhoe is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Copper Corp and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and Capstone 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 Capstone Copper Corp are associated (or correlated) with Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of Capstone Copper i.e., Capstone Copper and Ivanhoe Mines go up and down completely randomly.

Pair Corralation between Capstone Copper and Ivanhoe Mines

Assuming the 90 days horizon Capstone Copper Corp is expected to generate 0.85 times more return on investment than Ivanhoe Mines. However, Capstone Copper Corp is 1.17 times less risky than Ivanhoe Mines. It trades about 0.16 of its potential returns per unit of risk. Ivanhoe Mines is currently generating about -0.08 per unit of risk. If you would invest  509.00  in Capstone Copper Corp on May 12, 2025 and sell it today you would earn a total of  158.00  from holding Capstone Copper Corp or generate 31.04% return on investment over 90 days.

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

Capstone Copper Corp  vs.  Ivanhoe Mines

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 12 (%) 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.

Ivanhoe Mines

Risk-Adjusted Performance

Weakest

Over the last 90 days Ivanhoe Mines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Capstone Copper and Ivanhoe Mines

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

The idea behind Capstone Copper Corp and Ivanhoe Mines 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.