Correlation Between Southern Copper and Network 1
Can any of the company-specific risk be diversified away by investing in both Southern Copper and Network 1 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 Southern Copper and Network 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Copper and Network 1 Technologies, you can compare the effects of market volatilities on Southern Copper and Network 1 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 Southern Copper with a short position of Network 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and Network 1.
Diversification Opportunities for Southern Copper and Network 1
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southern and Network is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper and Network 1 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network 1 Technologies and Southern 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 Southern Copper are associated (or correlated) with Network 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network 1 Technologies has no effect on the direction of Southern Copper i.e., Southern Copper and Network 1 go up and down completely randomly.
Pair Corralation between Southern Copper and Network 1
Given the investment horizon of 90 days Southern Copper is expected to generate 0.61 times more return on investment than Network 1. However, Southern Copper is 1.65 times less risky than Network 1. It trades about 0.2 of its potential returns per unit of risk. Network 1 Technologies is currently generating about 0.05 per unit of risk. If you would invest 9,628 in Southern Copper on July 20, 2025 and sell it today you would earn a total of 3,353 from holding Southern Copper or generate 34.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern Copper vs. Network 1 Technologies
Performance |
| Timeline |
| Southern Copper |
| Network 1 Technologies |
Southern Copper and Network 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Copper and Network 1
The main advantage of trading using opposite Southern Copper and Network 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper position performs unexpectedly, Network 1 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 Network 1 will offset losses from the drop in Network 1's long position.| Southern Copper vs. Rio Tinto ADR | Southern Copper vs. Newmont Goldcorp Corp | Southern Copper vs. Freeport McMoran Copper Gold | Southern Copper vs. Agnico Eagle Mines |
| Network 1 vs. Aeries Technology | Network 1 vs. Sunrise New Energy | Network 1 vs. EuroDry | Network 1 vs. Zenta Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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