Correlation Between Taseko Mines and First Quantum
Can any of the company-specific risk be diversified away by investing in both Taseko Mines and First Quantum 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 First Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taseko Mines and First Quantum Minerals, you can compare the effects of market volatilities on Taseko Mines and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseko Mines and First Quantum.
Diversification Opportunities for Taseko Mines and First Quantum
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Taseko and First is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Taseko Mines and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of Taseko Mines i.e., Taseko Mines and First Quantum go up and down completely randomly.
Pair Corralation between Taseko Mines and First Quantum
Considering the 90-day investment horizon Taseko Mines is expected to generate 0.94 times more return on investment than First Quantum. However, Taseko Mines is 1.07 times less risky than First Quantum. It trades about 0.04 of its potential returns per unit of risk. First Quantum Minerals is currently generating about -0.01 per unit of risk. If you would invest 136.00 in Taseko Mines on August 25, 2024 and sell it today you would earn a total of 72.00 from holding Taseko Mines or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taseko Mines vs. First Quantum Minerals
Performance |
| Timeline |
| Taseko Mines |
| First Quantum Minerals |
Taseko Mines and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taseko Mines and First Quantum
The main advantage of trading using opposite Taseko Mines and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseko Mines position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum'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 |
| First Quantum vs. Amerigo Resources | First Quantum vs. Antofagasta PLC | First Quantum vs. Capstone Copper Corp | First Quantum vs. Copper Mountain Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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