Correlation Between QC Copper and International Tower
Can any of the company-specific risk be diversified away by investing in both QC Copper and International Tower 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 QC Copper and International Tower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QC Copper and and International Tower Hill, you can compare the effects of market volatilities on QC Copper and International Tower 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 QC Copper with a short position of International Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of QC Copper and International Tower.
Diversification Opportunities for QC Copper and International Tower
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between QCCU and International is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding QC Copper and and International Tower Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Tower Hill and QC 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 QC Copper and are associated (or correlated) with International Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Tower Hill has no effect on the direction of QC Copper i.e., QC Copper and International Tower go up and down completely randomly.
Pair Corralation between QC Copper and International Tower
Assuming the 90 days trading horizon QC Copper is expected to generate 4.48 times less return on investment than International Tower. But when comparing it to its historical volatility, QC Copper and is 1.19 times less risky than International Tower. It trades about 0.01 of its potential returns per unit of risk. International Tower Hill is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 74.00 in International Tower Hill on September 14, 2024 and sell it today you would lose (2.00) from holding International Tower Hill or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QC Copper and vs. International Tower Hill
Performance |
| Timeline |
| QC Copper |
| International Tower Hill |
QC Copper and International Tower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QC Copper and International Tower
The main advantage of trading using opposite QC Copper and International Tower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QC Copper position performs unexpectedly, International Tower 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 International Tower will offset losses from the drop in International Tower's long position.| QC Copper vs. Arizona Sonoran Copper | QC Copper vs. Marimaca Copper Corp | QC Copper vs. World Copper | QC Copper vs. Dore Copper Mining |
| International Tower vs. Xtra Gold Resources Corp | International Tower vs. Loncor Resources | International Tower vs. TRX Gold 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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