Correlation Between Embark Early and Capstone Copper

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

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

Diversification Opportunities for Embark Early and Capstone Copper

0.07

Correlation Coefficient

Embark Early  Capstone Copper

Significant diversification

The 3 months correlation between Embark and Capstone is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Embark Early Education 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 Embark Early 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 Embark Early Education 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 Embark Early i.e., Embark Early and Capstone Copper go up and down completely randomly.

Pair Corralation between Embark Early and Capstone Copper

Assuming the 90 days trading horizon Embark Early Education is expected to under-perform the Capstone Copper. But the stock apears to be less risky and, when comparing its historical volatility, Embark Early Education is 1.61 times less risky than Capstone Copper. The stock trades about -0.02 of its potential returns per unit of risk. The Capstone Copper Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  702.00  in Capstone Copper Corp on April 23, 2025 and sell it today you would earn a total of  178.00  from holding Capstone Copper Corp or generate 25.36% return on investment over 90 days.

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

Embark Early Education  vs.  Capstone Copper Corp

Embark Early Education

Risk-Adjusted Performance

Very Weak

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

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 11 (%) 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 Embark Early and Capstone Copper

The main advantage of trading using opposite Embark Early and Capstone Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embark Early 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 Embark Early Education 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.