Correlation Between QC Copper and International Bethlehem

Can any of the company-specific risk be diversified away by investing in both QC Copper and International Bethlehem 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 QC Copper and International Bethlehem into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QC Copper and and International Bethlehem Mining, you can compare the effects of market volatilities on QC Copper and International Bethlehem 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 QC Copper with a short position of International Bethlehem. Check out your portfolio center. Please also check ongoing floating volatility patterns of QC Copper and International Bethlehem.

Diversification Opportunities for QC Copper and International Bethlehem

0.0

Correlation Coefficient

QC Copper  International Bethlehem

Pay attention - limited upside

The 3 months correlation between QCCU and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QC Copper and and International Bethlehem Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bethlehem and QC 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 QC Copper and are associated (or correlated) with International Bethlehem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bethlehem has no effect on the direction of QC Copper i.e., QC Copper and International Bethlehem go up and down completely randomly.

Pair Corralation between QC Copper and International Bethlehem

If you would invest  16.00  in QC Copper and on October 10, 2024 and sell it today you would lose (3.00) from holding QC Copper and or give up 18.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

QC Copper and  vs.  International Bethlehem Mining

QC Copper

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QC Copper and are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, QC Copper may actually be approaching a critical reversion point that can send shares even higher in February 2025.

International Bethlehem

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Bethlehem Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, International Bethlehem is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with QC Copper and International Bethlehem

The main advantage of trading using opposite QC Copper and International Bethlehem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QC Copper position performs unexpectedly, International Bethlehem 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 International Bethlehem will offset losses from the drop in International Bethlehem's long position.

The idea behind QC Copper and and International Bethlehem Mining 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.