Correlation Between Erdene Resource and Copaur Minerals

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

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

Diversification Opportunities for Erdene Resource and Copaur Minerals

0.11

Correlation Coefficient

Erdene Resource  Copaur Minerals

Average diversification

The 3 months correlation between Erdene and Copaur is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Erdene Resource Development and Copaur Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copaur Minerals and Erdene Resource 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 Erdene Resource Development are associated (or correlated) with Copaur Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copaur Minerals has no effect on the direction of Erdene Resource i.e., Erdene Resource and Copaur Minerals go up and down completely randomly.

Pair Corralation between Erdene Resource and Copaur Minerals

Assuming the 90 days trading horizon Erdene Resource Development is expected to generate 0.51 times more return on investment than Copaur Minerals. However, Erdene Resource Development is 1.94 times less risky than Copaur Minerals. It trades about 0.04 of its potential returns per unit of risk. Copaur Minerals is currently generating about -0.01 per unit of risk. If you would invest  90.00  in Erdene Resource Development on April 24, 2025 and sell it today you would earn a total of  5.00  from holding Erdene Resource Development or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Erdene Resource Development  vs.  Copaur Minerals

Erdene Resource Deve

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Erdene Resource Development are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal fundamental indicators, Erdene Resource may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Copaur Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Copaur Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Copaur Minerals is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Erdene Resource and Copaur Minerals

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

The idea behind Erdene Resource Development and Copaur 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.

Check out your portfolio center.

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 CEOs Directory module to screen CEOs from public companies around the world.