Correlation Between Infinitum Copper and Copper Fox

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

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

Diversification Opportunities for Infinitum Copper and Copper Fox

-0.4

Correlation Coefficient

Infinitum Copper  Copper Fox

Very good diversification

The 3 months correlation between Infinitum and Copper is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Infinitum Copper Corp and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox Metals and Infinitum 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 Infinitum Copper Corp are associated (or correlated) with Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of Infinitum Copper i.e., Infinitum Copper and Copper Fox go up and down completely randomly.

Pair Corralation between Infinitum Copper and Copper Fox

Assuming the 90 days trading horizon Infinitum Copper Corp is expected to generate 2.69 times more return on investment than Copper Fox. However, Infinitum Copper is 2.69 times more volatile than Copper Fox Metals. It trades about 0.08 of its potential returns per unit of risk. Copper Fox Metals is currently generating about 0.02 per unit of risk. If you would invest  2.00  in Infinitum Copper Corp on April 22, 2025 and sell it today you would earn a total of  0.50  from holding Infinitum Copper Corp or generate 25.0% return on investment over 90 days.

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

Infinitum Copper Corp  vs.  Copper Fox Metals

Infinitum Copper Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Infinitum Copper Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Infinitum Copper showed solid returns over the last few months and may actually be approaching a breakup point.

Copper Fox Metals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Copper Fox Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Copper Fox 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 Infinitum Copper and Copper Fox

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

The idea behind Infinitum Copper Corp and Copper Fox Metals 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.