Correlation Between Taseko Mines and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Taseko Mines and Copper Fox 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 Copper Fox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taseko Mines and Copper Fox Metals, you can compare the effects of market volatilities on Taseko Mines and Copper Fox 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 Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseko Mines and Copper Fox.
Diversification Opportunities for Taseko Mines and Copper Fox
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Taseko and Copper is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Taseko Mines and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox Metals 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 Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of Taseko Mines i.e., Taseko Mines and Copper Fox go up and down completely randomly.
Pair Corralation between Taseko Mines and Copper Fox
Considering the 90-day investment horizon Taseko Mines is expected to under-perform the Copper Fox. But the stock apears to be less risky and, when comparing its historical volatility, Taseko Mines is 1.35 times less risky than Copper Fox. The stock trades about -0.06 of its potential returns per unit of risk. The Copper Fox Metals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Copper Fox Metals on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Copper Fox Metals or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taseko Mines vs. Copper Fox Metals
Performance |
| Timeline |
| Taseko Mines |
| Copper Fox Metals |
Taseko Mines and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taseko Mines and Copper Fox
The main advantage of trading using opposite Taseko Mines and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseko Mines position performs unexpectedly, Copper Fox 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 Copper Fox will offset losses from the drop in Copper Fox'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 |
| Copper Fox vs. Copper Mountain Mining | Copper Fox vs. Copper Fox Metals | Copper Fox vs. Highland Copper | Copper Fox vs. Copperbank Resources 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |