Correlation Between First Quantum and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both First Quantum and Wheaton Precious 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 First Quantum and Wheaton Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Quantum Minerals and Wheaton Precious Metals, you can compare the effects of market volatilities on First Quantum and Wheaton Precious 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 First Quantum with a short position of Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and Wheaton Precious.
Diversification Opportunities for First Quantum and Wheaton Precious
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Wheaton is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals and First Quantum 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 First Quantum Minerals are associated (or correlated) with Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of First Quantum i.e., First Quantum and Wheaton Precious go up and down completely randomly.
Pair Corralation between First Quantum and Wheaton Precious
Assuming the 90 days horizon First Quantum Minerals is expected to generate 1.4 times more return on investment than Wheaton Precious. However, First Quantum is 1.4 times more volatile than Wheaton Precious Metals. It trades about 0.11 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about -0.1 per unit of risk. If you would invest 1,799 in First Quantum Minerals on September 1, 2024 and sell it today you would earn a total of 114.00 from holding First Quantum Minerals or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Quantum Minerals vs. Wheaton Precious Metals
Performance |
| Timeline |
| First Quantum Minerals |
| Wheaton Precious Metals |
First Quantum and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Quantum and Wheaton Precious
The main advantage of trading using opposite First Quantum and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| First Quantum vs. Lundin Mining | First Quantum vs. HudBay Minerals | First Quantum vs. Teck Resources Limited | First Quantum vs. Ivanhoe Mines |
| Wheaton Precious vs. Franco Nevada | Wheaton Precious vs. Pan American Silver | Wheaton Precious vs. Agnico Eagle Mines | Wheaton Precious vs. Sandstorm Gold Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |