Correlation Between Taseko Mines and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Taseko Mines and Copperbank Resources 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 Copperbank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taseko Mines and Copperbank Resources Corp, you can compare the effects of market volatilities on Taseko Mines and Copperbank Resources 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 Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseko Mines and Copperbank Resources.
Diversification Opportunities for Taseko Mines and Copperbank Resources
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taseko and Copperbank is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Taseko Mines and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp 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 Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Taseko Mines i.e., Taseko Mines and Copperbank Resources go up and down completely randomly.
Pair Corralation between Taseko Mines and Copperbank Resources
Considering the 90-day investment horizon Taseko Mines is expected to under-perform the Copperbank Resources. In addition to that, Taseko Mines is 1.81 times more volatile than Copperbank Resources Corp. It trades about -0.08 of its total potential returns per unit of risk. Copperbank Resources Corp is currently generating about 0.01 per unit of volatility. If you would invest 63.00 in Copperbank Resources Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Copperbank Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taseko Mines vs. Copperbank Resources Corp
Performance |
| Timeline |
| Taseko Mines |
| Copperbank Resources Corp |
Taseko Mines and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taseko Mines and Copperbank Resources
The main advantage of trading using opposite Taseko Mines and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseko Mines position performs unexpectedly, Copperbank Resources 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.The idea behind Taseko Mines and Copperbank Resources Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Copper Fox Metals | Copperbank Resources vs. First Quantum Minerals | Copperbank Resources vs. Southern Copper |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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