Australia's largest stock trading and investment forum Australia's #1 stock forum

WA1

Click for more information

10.5%

$15.60 wa1 resources ltd

The only US investor that makes sense at the moment is PCC which...

First 677 Last

Share
Profile

Follow
Naydoe

1,855 Posts.

584

19/07/24

09:42

Post #: 74823434
Share

Originally posted by jcmyck: ↑

To quantify this, pre- and post- inclusion to the Global X Copper Miners ETF on 01/05/24 (details here), the correlation between WA1 returns and copper futures returns has gone from 0.08 to 0.45 (I use rolling 3-day return in this estimator to reduce the effect of asynchronous hours), meaning copper is now a significant explanatory factor in WA1's returns. As discussed previously, there are real economic linkages between these metals for various reasons, but there is also now a mechanical effect, i.e. sell-off in copper => outflows from COPX => WA1 shares sold. For example, since the beginning of July, COPX's 1.6m share WA1 holding has reduced by ~100k shares due to outflows.

Correspondingly, the beta for WA1 returns against copper returns in the post-inclusion period is ~1.5, i.e. there is an expected 1.5% change in WA1 price for each 1% change in copper price. As the copper price has declined ~9% since peaking on May 20th, incidentally when WA1 peaked, the expected decline in WA1 price attributable to the copper move is ~14%.

Just something to think about..

P.S. Thanks @Naydoe, interesting!

Expand

The only US investor that makes sense at the moment is PCC which is a subsidiary of Berkshire.

WA1 Price at posting: $15.98 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

NOX

Noxopharm aims for autoimmune market with first human trial of SOF-SKN

PR1

Fourfold skarn increase points the way to viable garnet project, says Pure

Good habits matters when it comes to finances

Earnings wrap Monday Week 34: A2 Milk, Bluescope, Suncorp's climate woes & more

SMI

Gold intercept of 8.6 g/t continues the positive storyline for Santana at NZ's RAS deposit

There are more pages in this discussion • 74 more messages in this thread...

First 677 Last

Add WA1 (ASX) to my watchlist

(20min delay)
Last $15.60		Change 1.480(10.5%)		Mkt cap ! $1.011B

Open	High	Low	Value	Volume
$14.19	$15.62	$14.08	$6.371M	421.8K

Buyers (Bids)

No.	Vol.	Price($)
1	967	$15.53

Sellers (Offers)

Price($)	Vol.	No.
$15.60	3609	5

View Market Depth

No.	Vol.	Price($)
1	967	15.530
1	161	15.520
3	5838	15.500
3	671	15.480
1	3687	15.410

Price($)	Vol.	No.
15.600	3609	5
15.620	275	1
15.670	1521	2
15.740	1521	1
15.800	1020	2

Last trade - 16.10pm 19/08/2024 (20 minute delay)

WA1 (ASX) Chart