Correlation Between First Quantum and Copper Fox
Can any of the company-specific risk be diversified away by investing in both First Quantum and Copper Fox 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 Copper Fox 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 Copper Fox Metals, you can compare the effects of market volatilities on First Quantum and Copper Fox 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 Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and Copper Fox.
Diversification Opportunities for First Quantum and Copper Fox
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Copper is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox 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 Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of First Quantum i.e., First Quantum and Copper Fox go up and down completely randomly.
Pair Corralation between First Quantum and Copper Fox
Assuming the 90 days horizon First Quantum is expected to generate 22.87 times less return on investment than Copper Fox. But when comparing it to its historical volatility, First Quantum Minerals is 1.83 times less risky than Copper Fox. It trades about 0.0 of its potential returns per unit of risk. Copper Fox Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. 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 |
First Quantum Minerals vs. Copper Fox Metals
Performance |
| Timeline |
| First Quantum Minerals |
| Copper Fox Metals |
First Quantum and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Quantum and Copper Fox
The main advantage of trading using opposite First Quantum and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum position performs unexpectedly, Copper Fox 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 Copper Fox will offset losses from the drop in Copper Fox's long position.| First Quantum vs. Amerigo Resources | First Quantum vs. Antofagasta PLC | First Quantum vs. Capstone Copper Corp | First Quantum vs. Copper Mountain Mining |
| Copper Fox vs. Copper Mountain Mining | Copper Fox vs. Copper Fox Metals | Copper Fox vs. Highland Copper | Copper Fox vs. Copperbank Resources Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |