Correlation Between Western Copper and Taseko Mines
Can any of the company-specific risk be diversified away by investing in both Western Copper and Taseko Mines 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 Western Copper and Taseko Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Copper and and Taseko Mines, you can compare the effects of market volatilities on Western Copper and Taseko Mines 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 Western Copper with a short position of Taseko Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Taseko Mines.
Diversification Opportunities for Western Copper and Taseko Mines
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Taseko is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Taseko Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseko Mines and Western 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 Western Copper and are associated (or correlated) with Taseko Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseko Mines has no effect on the direction of Western Copper i.e., Western Copper and Taseko Mines go up and down completely randomly.
Pair Corralation between Western Copper and Taseko Mines
Assuming the 90 days trading horizon Western Copper and is expected to generate 0.78 times more return on investment than Taseko Mines. However, Western Copper and is 1.28 times less risky than Taseko Mines. It trades about 0.03 of its potential returns per unit of risk. Taseko Mines is currently generating about -0.08 per unit of risk. If you would invest 159.00 in Western Copper and on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Western Copper and or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Taseko Mines
Performance |
| Timeline |
| Western Copper |
| Taseko Mines |
Western Copper and Taseko Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Taseko Mines
The main advantage of trading using opposite Western Copper and Taseko Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Taseko Mines 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 Taseko Mines will offset losses from the drop in Taseko Mines' long position.| Western Copper vs. First Majestic Silver | Western Copper vs. Ivanhoe Energy | Western Copper vs. Orezone Gold Corp | Western Copper vs. Faraday Copper Corp |
| Taseko Mines vs. Capstone Mining Corp | Taseko Mines vs. Western Copper and | Taseko Mines vs. Imperial 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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