Correlation Between Evolution Mining and Capstone Copper

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

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

Diversification Opportunities for Evolution Mining and Capstone Copper

-0.29

Correlation Coefficient

Evolution Mining  Capstone Copper

Very good diversification

The 3 months correlation between Evolution and Capstone is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Evolution 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 Evolution Mining 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 Evolution 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 Evolution Mining i.e., Evolution Mining and Capstone Copper go up and down completely randomly.

Pair Corralation between Evolution Mining and Capstone Copper

Assuming the 90 days trading horizon Evolution Mining is expected to under-perform the Capstone Copper. In addition to that, Evolution Mining is 1.11 times more volatile than Capstone Copper Corp. It trades about -0.01 of its total potential returns per unit of risk. Capstone Copper Corp is currently generating about 0.13 per unit of volatility. If you would invest  751.00  in Capstone Copper Corp on April 24, 2025 and sell it today you would earn a total of  151.00  from holding Capstone Copper Corp or generate 20.11% return on investment over 90 days.

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

Evolution Mining  vs.  Capstone Copper Corp

Evolution Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolution Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Evolution Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Capstone Copper Corp

Risk-Adjusted Performance

OK

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. In spite of comparatively uncertain fundamental indicators, Capstone Copper unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Evolution Mining and Capstone Copper

The main advantage of trading using opposite Evolution Mining and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining 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 Evolution 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.