Correlation Between QC Copper and New Found
Can any of the company-specific risk be diversified away by investing in both QC Copper and New Found 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 New Found 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 New Found Gold, you can compare the effects of market volatilities on QC Copper and New Found 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 New Found. Check out your portfolio center. Please also check ongoing floating volatility patterns of QC Copper and New Found.
Diversification Opportunities for QC Copper and New Found
Very weak diversification
The 3 months correlation between QCCU and New is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding QC Copper and and New Found Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Found Gold 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 New Found. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Found Gold has no effect on the direction of QC Copper i.e., QC Copper and New Found go up and down completely randomly.
Pair Corralation between QC Copper and New Found
Assuming the 90 days trading horizon QC Copper and is expected to under-perform the New Found. But the stock apears to be less risky and, when comparing its historical volatility, QC Copper and is 1.32 times less risky than New Found. The stock trades about -0.11 of its potential returns per unit of risk. The New Found Gold is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 275.00 in New Found Gold on September 13, 2024 and sell it today you would lose (22.00) from holding New Found Gold or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QC Copper and vs. New Found Gold
Performance |
| Timeline |
| QC Copper |
| New Found Gold |
QC Copper and New Found Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QC Copper and New Found
The main advantage of trading using opposite QC Copper and New Found positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QC Copper position performs unexpectedly, New Found 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 New Found will offset losses from the drop in New Found'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 |
| New Found vs. Arizona Sonoran Copper | New Found vs. Marimaca Copper Corp | New Found vs. World Copper | New Found vs. QC Copper and |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |