Correlation Between First Quantum and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both First Quantum and InPlay Oil 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 First Quantum and InPlay Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Quantum Minerals and InPlay Oil Corp, you can compare the effects of market volatilities on First Quantum and InPlay Oil 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 First Quantum with a short position of InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and InPlay Oil.
Diversification Opportunities for First Quantum and InPlay Oil
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and InPlay is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp and First Quantum 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 First Quantum Minerals are associated (or correlated) with InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of First Quantum i.e., First Quantum and InPlay Oil go up and down completely randomly.
Pair Corralation between First Quantum and InPlay Oil
Assuming the 90 days horizon First Quantum Minerals is expected to generate 1.17 times more return on investment than InPlay Oil. However, First Quantum is 1.17 times more volatile than InPlay Oil Corp. It trades about 0.16 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about 0.11 per unit of risk. If you would invest 2,506 in First Quantum Minerals on September 3, 2025 and sell it today you would earn a total of 654.00 from holding First Quantum Minerals or generate 26.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Quantum Minerals vs. InPlay Oil Corp
Performance |
| Timeline |
| First Quantum Minerals |
| InPlay Oil Corp |
First Quantum and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Quantum and InPlay Oil
The main advantage of trading using opposite First Quantum and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| First Quantum vs. Firan Technology Group | First Quantum vs. Plantify Foods | First Quantum vs. Quorum Information Technologies | First Quantum vs. Primaris Retail RE |
| InPlay Oil vs. Totally Hip Technologies | InPlay Oil vs. Orbit Garant Drilling | InPlay Oil vs. Applied Materials, | InPlay Oil vs. Falcon Energy Materials |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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