Correlation Between Western Copper and Anheuser-Busch InBev
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By analyzing existing cross correlation between Western Copper and and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on Western Copper and Anheuser-Busch InBev 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 Western Copper with a short position of Anheuser-Busch InBev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Anheuser-Busch InBev.
Diversification Opportunities for Western Copper and Anheuser-Busch InBev
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Anheuser-Busch is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev and Western Copper 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 Western Copper and are associated (or correlated) with Anheuser-Busch InBev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch InBev has no effect on the direction of Western Copper i.e., Western Copper and Anheuser-Busch InBev go up and down completely randomly.
Pair Corralation between Western Copper and Anheuser-Busch InBev
Assuming the 90 days trading horizon Western Copper and is expected to generate 4.15 times more return on investment than Anheuser-Busch InBev. However, Western Copper is 4.15 times more volatile than Anheuser Busch InBev SANV. It trades about 0.1 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about -0.24 per unit of risk. If you would invest 96.00 in Western Copper and on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Western Copper and or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Anheuser Busch InBev SANV
Performance |
| Timeline |
| Western Copper |
| Anheuser Busch InBev |
Western Copper and Anheuser-Busch InBev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Anheuser-Busch InBev
The main advantage of trading using opposite Western Copper and Anheuser-Busch InBev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Anheuser-Busch InBev 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 Anheuser-Busch InBev will offset losses from the drop in Anheuser-Busch InBev's long position.| Western Copper vs. Tower One Wireless | Western Copper vs. Ribbon Communications | Western Copper vs. Mobilezone Holding AG | Western Copper vs. COMBA TELECOM SYST |
| Anheuser-Busch InBev vs. Fevertree Drinks PLC | Anheuser-Busch InBev vs. Western Copper and | Anheuser-Busch InBev vs. Perseus Mining Limited | Anheuser-Busch InBev vs. GRIFFIN MINING LTD |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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