Correlation Between Antofagasta PLC and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC and Cornish Metals 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 Antofagasta PLC and Cornish Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Cornish Metals, you can compare the effects of market volatilities on Antofagasta PLC and Cornish Metals 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 Antofagasta PLC with a short position of Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Cornish Metals.
Diversification Opportunities for Antofagasta PLC and Cornish Metals
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Antofagasta and Cornish is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals and Antofagasta PLC 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 Antofagasta PLC are associated (or correlated) with Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Antofagasta PLC i.e., Antofagasta PLC and Cornish Metals go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Cornish Metals
Assuming the 90 days trading horizon Antofagasta PLC is expected to generate 0.98 times more return on investment than Cornish Metals. However, Antofagasta PLC is 1.02 times less risky than Cornish Metals. It trades about 0.19 of its potential returns per unit of risk. Cornish Metals is currently generating about 0.02 per unit of risk. If you would invest 223,000 in Antofagasta PLC on September 12, 2025 and sell it today you would earn a total of 69,000 from holding Antofagasta PLC or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antofagasta PLC vs. Cornish Metals
Performance |
| Timeline |
| Antofagasta PLC |
| Cornish Metals |
Antofagasta PLC and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Cornish Metals
The main advantage of trading using opposite Antofagasta PLC and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Antofagasta PLC vs. Samsung Electronics Co | Antofagasta PLC vs. AMG Advanced Metallurgical | Antofagasta PLC vs. Jacquet Metal Service | Antofagasta PLC vs. Metlen Energy Metals |
| Cornish Metals vs. GreenX Metals | Cornish Metals vs. Symphony Environmental Technologies | Cornish Metals vs. Impax Environmental Markets | Cornish Metals vs. Europa Metals |
Check out your portfolio center.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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