Correlation Between Taseko Mines and Aguila American
Can any of the company-specific risk be diversified away by investing in both Taseko Mines and Aguila American 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 Taseko Mines and Aguila American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taseko Mines and Aguila American Gold, you can compare the effects of market volatilities on Taseko Mines and Aguila American 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 Taseko Mines with a short position of Aguila American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseko Mines and Aguila American.
Diversification Opportunities for Taseko Mines and Aguila American
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taseko and Aguila is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Taseko Mines and Aguila American Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aguila American Gold and Taseko Mines 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 Taseko Mines are associated (or correlated) with Aguila American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aguila American Gold has no effect on the direction of Taseko Mines i.e., Taseko Mines and Aguila American go up and down completely randomly.
Pair Corralation between Taseko Mines and Aguila American
Considering the 90-day investment horizon Taseko Mines is expected to generate 2.92 times less return on investment than Aguila American. But when comparing it to its historical volatility, Taseko Mines is 2.29 times less risky than Aguila American. It trades about 0.06 of its potential returns per unit of risk. Aguila American Gold is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Aguila American Gold on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Aguila American Gold or generate 154.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.71% |
| Values | Daily Returns |
Taseko Mines vs. Aguila American Gold
Performance |
| Timeline |
| Taseko Mines |
| Aguila American Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Taseko Mines and Aguila American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taseko Mines and Aguila American
The main advantage of trading using opposite Taseko Mines and Aguila American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseko Mines position performs unexpectedly, Aguila American 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 Aguila American will offset losses from the drop in Aguila American's long position.| Taseko Mines vs. Capstone Copper Corp | Taseko Mines vs. Hudbay Minerals | Taseko Mines vs. Ero Copper Corp | Taseko Mines vs. CopperCorp Resources |
| Aguila American vs. Arizona Sonoran Copper | Aguila American vs. Dor Copper Mining | Aguila American vs. CopperCorp Resources | Aguila American vs. Copper Fox Metals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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