Correlation Between Taseko Mines and Rubis

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

By analyzing existing cross correlation between Taseko Mines and Rubis, you can compare the effects of market volatilities on Taseko Mines and Rubis 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 Rubis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseko Mines and Rubis.

Diversification Opportunities for Taseko Mines and Rubis

0.86

Correlation Coefficient

Taseko Mines  Rubis

Very poor diversification

The 3 months correlation between Taseko and Rubis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Taseko Mines and Rubis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis 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 Rubis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis has no effect on the direction of Taseko Mines i.e., Taseko Mines and Rubis go up and down completely randomly.

Pair Corralation between Taseko Mines and Rubis

If you would invest  236.00  in Taseko Mines on February 23, 2024 and sell it today you would earn a total of  42.00  from holding Taseko Mines or generate 17.8% return on investment over 90 days.

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

Taseko Mines  vs.  Rubis

Taseko Mines

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Taseko Mines are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, Taseko Mines sustained solid returns over the last few months and may actually be approaching a breakup point.

Rubis

Risk-Adjusted Performance

12 of 100

Good

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

Pair Trading with Taseko Mines and Rubis

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

The idea behind Taseko Mines and Rubis 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.