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

-0.09

Correlation Coefficient

Taseko Mines  Copper Fox

Good diversification

The 3 months correlation between Taseko and Copper is -0.09. 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 generate 0.72 times more return on investment than Copper Fox. However, Taseko Mines is 1.39 times less risky than Copper Fox. It trades about -0.04 of its potential returns per unit of risk. Copper Fox Metals is currently generating about -0.29 per unit of risk. If you would invest  208.00  in Taseko Mines on September 20, 2024 and sell it today you would lose (6.00) from holding Taseko Mines or give up 2.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Taseko Mines  vs.  Copper Fox Metals

Taseko Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taseko Mines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Copper Fox Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Copper Fox Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Copper Fox is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

The idea behind Taseko Mines and Copper Fox Metals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..