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$15.46 wa1 resources ltd

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

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Naydoe

1,720 Posts.

468

19/07/24

09:42

Post #: 74823434
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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!

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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
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(20min delay)
Last $15.46		Change -0.520(3.25%)		Mkt cap ! $1.010B

Open	High	Low	Value	Volume
$15.90	$15.90	$15.44	$2.539M	162.4K

Buyers (Bids)

No.	Vol.	Price($)
5	148	$15.41

Sellers (Offers)

Price($)	Vol.	No.
$15.46	491	12

View Market Depth

No.	Vol.	Price($)
4	507	15.410
4	1106	15.400
3	189	15.390
3	176	15.380
1	90	15.370

Price($)	Vol.	No.
15.470	113	3
15.480	160	3
15.490	90	1
15.520	48	1
15.530	55	1

Last trade - 14.50pm 19/07/2024 (20 minute delay)

WA1 (ASX) Chart