Correlation Between Taseko Mines and ATEX Resources

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

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

Diversification Opportunities for Taseko Mines and ATEX Resources

0.47

Correlation Coefficient

Taseko Mines  ATEX Resources

Very weak diversification

The 3 months correlation between Taseko and ATEX is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Taseko Mines and ATEX Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEX Resources 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 ATEX Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEX Resources has no effect on the direction of Taseko Mines i.e., Taseko Mines and ATEX Resources go up and down completely randomly.

Pair Corralation between Taseko Mines and ATEX Resources

Assuming the 90 days trading horizon Taseko Mines is expected to generate 1.29 times more return on investment than ATEX Resources. However, Taseko Mines is 1.29 times more volatile than ATEX Resources. It trades about 0.19 of its potential returns per unit of risk. ATEX Resources is currently generating about 0.02 per unit of risk. If you would invest  284.00  in Taseko Mines on April 21, 2025 and sell it today you would earn a total of  156.00  from holding Taseko Mines or generate 54.93% return on investment over 90 days.

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

Taseko Mines  vs.  ATEX Resources

Taseko Mines

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Taseko Mines are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Taseko Mines displayed solid returns over the last few months and may actually be approaching a breakup point.

ATEX Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATEX Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, ATEX Resources is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Taseko Mines and ATEX Resources

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

The idea behind Taseko Mines and ATEX Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.