Correlation Between Western Copper and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Western Copper and Superior Plus 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 Western Copper and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Copper and and Superior Plus Corp, you can compare the effects of market volatilities on Western Copper and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Superior Plus.
Diversification Opportunities for Western Copper and Superior Plus
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Superior is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Western Copper i.e., Western Copper and Superior Plus go up and down completely randomly.
Pair Corralation between Western Copper and Superior Plus
Assuming the 90 days trading horizon Western Copper and is expected to generate 1.02 times more return on investment than Superior Plus. However, Western Copper is 1.02 times more volatile than Superior Plus Corp. It trades about 0.02 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.01 per unit of risk. If you would invest 103.00 in Western Copper and on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Western Copper and or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Superior Plus Corp
Performance |
| Timeline |
| Western Copper |
| Superior Plus Corp |
Western Copper and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Superior Plus
The main advantage of trading using opposite Western Copper and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Western Copper vs. Superior Plus Corp | Western Copper vs. NMI Holdings | Western Copper vs. Origin Agritech | Western Copper vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |