Correlation Between CopperCorp Resources and First Quantum

Can any of the company-specific risk be diversified away by investing in both CopperCorp Resources 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 CopperCorp Resources and First Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CopperCorp Resources and First Quantum Minerals, you can compare the effects of market volatilities on CopperCorp Resources 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 CopperCorp Resources with a short position of First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CopperCorp Resources and First Quantum.

Diversification Opportunities for CopperCorp Resources and First Quantum

0.72

Correlation Coefficient

CopperCorp Resources  First Quantum

Poor diversification

The 3 months correlation between CopperCorp and First is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CopperCorp Resources 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 CopperCorp Resources 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 CopperCorp Resources 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 CopperCorp Resources i.e., CopperCorp Resources and First Quantum go up and down completely randomly.

Pair Corralation between CopperCorp Resources and First Quantum

Assuming the 90 days horizon CopperCorp Resources is expected to generate 3.04 times more return on investment than First Quantum. However, CopperCorp Resources is 3.04 times more volatile than First Quantum Minerals. It trades about 0.16 of its potential returns per unit of risk. First Quantum Minerals is currently generating about 0.13 per unit of risk. If you would invest  5.21  in CopperCorp Resources on May 10, 2025 and sell it today you would earn a total of  3.71  from holding CopperCorp Resources or generate 71.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

CopperCorp Resources  vs.  First Quantum Minerals

CopperCorp Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CopperCorp Resources are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CopperCorp Resources reported solid returns over the last few months and may actually be approaching a breakup point.

First Quantum Minerals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Quantum Minerals are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, First Quantum reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CopperCorp Resources and First Quantum

The main advantage of trading using opposite CopperCorp Resources and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CopperCorp Resources 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.

The idea behind CopperCorp Resources and First Quantum Minerals 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.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.