Correlation Between Argus Metals and HudBay Minerals

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Can any of the company-specific risk be diversified away by investing in both Argus Metals and HudBay Minerals 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 Argus Metals and HudBay Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argus Metals Corp and HudBay Minerals, you can compare the effects of market volatilities on Argus Metals and HudBay Minerals 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 Argus Metals with a short position of HudBay Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argus Metals and HudBay Minerals.

Diversification Opportunities for Argus Metals and HudBay Minerals

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Argus and HudBay is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Argus Metals Corp and HudBay Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HudBay Minerals and Argus Metals 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 Argus Metals Corp are associated (or correlated) with HudBay Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HudBay Minerals has no effect on the direction of Argus Metals i.e., Argus Metals and HudBay Minerals go up and down completely randomly.

Pair Corralation between Argus Metals and HudBay Minerals

Assuming the 90 days horizon Argus Metals Corp is expected to under-perform the HudBay Minerals. In addition to that, Argus Metals is 1.34 times more volatile than HudBay Minerals. It trades about -0.21 of its total potential returns per unit of risk. HudBay Minerals is currently generating about 0.05 per unit of volatility. If you would invest  2,165  in HudBay Minerals on August 27, 2025 and sell it today you would earn a total of  59.00  from holding HudBay Minerals or generate 2.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Argus Metals Corp  vs.  HudBay Minerals

 Performance 
       Timeline  
Argus Metals Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Argus Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
HudBay Minerals 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in HudBay Minerals are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, HudBay Minerals displayed solid returns over the last few months and may actually be approaching a breakup point.

Argus Metals and HudBay Minerals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Argus Metals and HudBay Minerals

The main advantage of trading using opposite Argus Metals and HudBay Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argus Metals position performs unexpectedly, HudBay Minerals 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 HudBay Minerals will offset losses from the drop in HudBay Minerals' long position.
The idea behind Argus Metals Corp and HudBay Minerals 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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