Correlation Between Marchex and Copperbank Resources

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

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

Diversification Opportunities for Marchex and Copperbank Resources

-0.35

Correlation Coefficient

Marchex  Copperbank Resources

Very good diversification

The 3 months correlation between Marchex and Copperbank is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp and Marchex 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 Marchex are associated (or correlated) with Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Marchex i.e., Marchex and Copperbank Resources go up and down completely randomly.

Pair Corralation between Marchex and Copperbank Resources

Given the investment horizon of 90 days Marchex is expected to under-perform the Copperbank Resources. In addition to that, Marchex is 1.2 times more volatile than Copperbank Resources Corp. It trades about -0.04 of its total potential returns per unit of risk. Copperbank Resources Corp is currently generating about 0.05 per unit of volatility. If you would invest  54.00  in Copperbank Resources Corp on January 31, 2025 and sell it today you would earn a total of  9.00  from holding Copperbank Resources Corp or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.4%
Values	Daily Returns

Marchex  vs.  Copperbank Resources Corp

Marchex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marchex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Copperbank Resources Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Copperbank Resources Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, Copperbank Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marchex and Copperbank Resources

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

The idea behind Marchex and Copperbank Resources 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.