Correlation Between QC Copper and Torex Gold
Can any of the company-specific risk be diversified away by investing in both QC Copper and Torex Gold 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 Torex Gold 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 Torex Gold Resources, you can compare the effects of market volatilities on QC Copper and Torex Gold 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 Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of QC Copper and Torex Gold.
Diversification Opportunities for QC Copper and Torex Gold
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QCCU and Torex is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding QC Copper and and Torex Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torex Gold Resources 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 Torex Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torex Gold Resources has no effect on the direction of QC Copper i.e., QC Copper and Torex Gold go up and down completely randomly.
Pair Corralation between QC Copper and Torex Gold
Assuming the 90 days trading horizon QC Copper is expected to generate 1.6 times less return on investment than Torex Gold. In addition to that, QC Copper is 1.68 times more volatile than Torex Gold Resources. It trades about 0.02 of its total potential returns per unit of risk. Torex Gold Resources is currently generating about 0.05 per unit of volatility. If you would invest 2,031 in Torex Gold Resources on December 6, 2024 and sell it today you would earn a total of 1,157 from holding Torex Gold Resources or generate 56.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.97% |
| Values | Daily Returns |
QC Copper and vs. Torex Gold Resources
Performance |
| Timeline |
| QC Copper |
Risk-Adjusted Performance
Weak
Weak | Strong |
| Torex Gold Resources |
QC Copper and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QC Copper and Torex Gold
The main advantage of trading using opposite QC Copper and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QC Copper position performs unexpectedly, Torex Gold 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 Torex Gold will offset losses from the drop in Torex Gold's long position.| QC Copper vs. Baselode Energy Corp | QC Copper vs. Surge Copper Corp | QC Copper vs. Marimaca Copper Corp | QC Copper vs. Kodiak Copper Corp |
| Torex Gold vs. OceanaGold | Torex Gold vs. Wesdome Gold Mines | Torex Gold vs. Centerra Gold | Torex Gold vs. Alamos Gold |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets |