Correlation Between Teck Resources and New Gold
Can any of the company-specific risk be diversified away by investing in both Teck Resources and New Gold 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 New Gold 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 New Gold, you can compare the effects of market volatilities on Teck Resources and New Gold 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 New Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teck Resources and New Gold.
Diversification Opportunities for Teck Resources and New Gold
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teck and New is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Teck Resources Limited and New Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Gold 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 New Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Gold has no effect on the direction of Teck Resources i.e., Teck Resources and New Gold go up and down completely randomly.
Pair Corralation between Teck Resources and New Gold
Assuming the 90 days trading horizon Teck Resources is expected to generate 1.22 times less return on investment than New Gold. But when comparing it to its historical volatility, Teck Resources Limited is 1.26 times less risky than New Gold. It trades about 0.16 of its potential returns per unit of risk. New Gold is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 849.00 in New Gold on September 3, 2025 and sell it today you would earn a total of 311.00 from holding New Gold or generate 36.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teck Resources Limited vs. New Gold
Performance |
| Timeline |
| Teck Resources |
| New Gold |
Teck Resources and New Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teck Resources and New Gold
The main advantage of trading using opposite Teck Resources and New Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teck Resources position performs unexpectedly, New Gold 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 New Gold will offset losses from the drop in New Gold's long position.| Teck Resources vs. Brookfield Office Properties | Teck Resources vs. Dream Office Real | Teck Resources vs. 2028 Investment Grade | Teck Resources vs. Plaza Retail REIT |
| New Gold vs. Pond Technologies Holdings | New Gold vs. Thunderbird Entertainment Group | New Gold vs. Network Media Group | New Gold vs. CNJ Capital Investments |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |