Correlation Between Teck Resources and Evolution Mining

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

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

Diversification Opportunities for Teck Resources and Evolution Mining

0.0

Correlation Coefficient

Teck Resources  Evolution Mining

Pay attention - limited upside

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

Pair Corralation between Teck Resources and Evolution Mining

If you would invest  527.00  in Evolution Mining on August 26, 2025 and sell it today you would earn a total of  186.00  from holding Evolution Mining or generate 35.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Teck Resources Limited  vs.  Evolution Mining

Teck Resources

Risk-Adjusted Performance

Weakest

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

Evolution Mining

Risk-Adjusted Performance

Fair

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

Pair Trading with Teck Resources and Evolution Mining

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

The idea behind Teck Resources Limited and Evolution 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.