Correlation Between Copper Fox and First Quantum
Can any of the company-specific risk be diversified away by investing in both Copper Fox and First Quantum 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 Copper Fox and First Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copper Fox Metals and First Quantum Minerals, you can compare the effects of market volatilities on Copper Fox and First Quantum 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 Copper Fox with a short position of First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper Fox and First Quantum.
Diversification Opportunities for Copper Fox and First Quantum
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Copper and First is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Copper Fox Metals and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals and Copper Fox 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 Copper Fox Metals are associated (or correlated) with First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of Copper Fox i.e., Copper Fox and First Quantum go up and down completely randomly.
Pair Corralation between Copper Fox and First Quantum
Assuming the 90 days horizon Copper Fox Metals is expected to generate 1.83 times more return on investment than First Quantum. However, Copper Fox is 1.83 times more volatile than First Quantum Minerals. It trades about 0.03 of its potential returns per unit of risk. First Quantum Minerals is currently generating about 0.0 per unit of risk. If you would invest 20.00 in Copper Fox Metals on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Copper Fox Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copper Fox Metals vs. First Quantum Minerals
Performance |
| Timeline |
| Copper Fox Metals |
| First Quantum Minerals |
Copper Fox and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copper Fox and First Quantum
The main advantage of trading using opposite Copper Fox and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper Fox position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.| Copper Fox vs. Copper Mountain Mining | Copper Fox vs. Copper Fox Metals | Copper Fox vs. Highland Copper | Copper Fox vs. Copperbank Resources Corp |
| First Quantum vs. Amerigo Resources | First Quantum vs. Antofagasta PLC | First Quantum vs. Capstone Copper Corp | First Quantum vs. Copper Mountain Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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