Correlation Between Nevada Copper and First Quantum
Can any of the company-specific risk be diversified away by investing in both Nevada Copper 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 Nevada Copper and First Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nevada Copper Corp and First Quantum Minerals, you can compare the effects of market volatilities on Nevada Copper 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 Nevada Copper with a short position of First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nevada Copper and First Quantum.
Diversification Opportunities for Nevada Copper and First Quantum
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nevada and First is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nevada Copper Corp 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 Nevada 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 Nevada Copper Corp 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 Nevada Copper i.e., Nevada Copper and First Quantum go up and down completely randomly.
Pair Corralation between Nevada Copper and First Quantum
If you would invest 1,335 in First Quantum Minerals on August 25, 2024 and sell it today you would earn a total of 44.00 from holding First Quantum Minerals or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Nevada Copper Corp vs. First Quantum Minerals
Performance |
| Timeline |
| Nevada Copper Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Quantum Minerals |
Nevada Copper and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nevada Copper and First Quantum
The main advantage of trading using opposite Nevada Copper and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nevada Copper 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.| Nevada Copper vs. Ero Copper Corp | Nevada Copper vs. Copperbank Resources Corp | Nevada Copper vs. Copper Mountain Mining | Nevada Copper vs. CopperCorp Resources |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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