Correlation Between Ero Copper and SSR Mining

Can any of the company-specific risk be diversified away by investing in both Ero Copper and SSR Mining 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 SSR Mining 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 SSR Mining, you can compare the effects of market volatilities on Ero Copper and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ero Copper and SSR Mining.

Diversification Opportunities for Ero Copper and SSR Mining

0.83

Correlation Coefficient

Ero Copper  SSR Mining

Very poor diversification

The 3 months correlation between Ero and SSR is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ero Copper Corp and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Ero Copper i.e., Ero Copper and SSR Mining go up and down completely randomly.

Pair Corralation between Ero Copper and SSR Mining

Assuming the 90 days trading horizon Ero Copper Corp is expected to generate 1.04 times more return on investment than SSR Mining. However, Ero Copper is 1.04 times more volatile than SSR Mining. It trades about 0.13 of its potential returns per unit of risk. SSR Mining is currently generating about 0.1 per unit of risk. If you would invest  1,551  in Ero Copper Corp on April 22, 2025 and sell it today you would earn a total of  401.00  from holding Ero Copper Corp or generate 25.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Ero Copper Corp  vs.  SSR Mining

Ero Copper Corp

Risk-Adjusted Performance

OK

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

SSR Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ero Copper and SSR Mining

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

The idea behind Ero Copper Corp and SSR Mining 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.