Correlation Between Ero Copper and Partners Value

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

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

Diversification Opportunities for Ero Copper and Partners Value

0.51

Correlation Coefficient

Ero Copper  Partners Value

Very weak diversification

The 3 months correlation between Ero and Partners is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ero Copper Corp and Partners Value Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Value Inves and Ero 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 Ero Copper Corp are associated (or correlated) with Partners Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Value Inves has no effect on the direction of Ero Copper i.e., Ero Copper and Partners Value go up and down completely randomly.

Pair Corralation between Ero Copper and Partners Value

Assuming the 90 days trading horizon Ero Copper Corp is expected to generate 1.1 times more return on investment than Partners Value. However, Ero Copper is 1.1 times more volatile than Partners Value Investments. It trades about 0.24 of its potential returns per unit of risk. Partners Value Investments is currently generating about 0.02 per unit of risk. If you would invest  2,116  in Ero Copper Corp on September 7, 2025 and sell it today you would earn a total of  1,342  from holding Ero Copper Corp or generate 63.42% return on investment over 90 days.

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

Ero Copper Corp  vs.  Partners Value Investments

Ero Copper Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ero Copper Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Ero Copper displayed solid returns over the last few months and may actually be approaching a breakup point.

Partners Value Inves

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Partners Value Investments are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Partners Value is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ero Copper and Partners Value

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

The idea behind Ero Copper Corp and Partners Value Investments 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.