Correlation Between Western Copper and Atrium Ljungberg
Can any of the company-specific risk be diversified away by investing in both Western Copper and Atrium Ljungberg 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 Atrium Ljungberg 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 Atrium Ljungberg AB, you can compare the effects of market volatilities on Western Copper and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Atrium Ljungberg.
Diversification Opportunities for Western Copper and Atrium Ljungberg
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Atrium is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of Western Copper i.e., Western Copper and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between Western Copper and Atrium Ljungberg
Assuming the 90 days trading horizon Western Copper is expected to generate 4.93 times less return on investment than Atrium Ljungberg. In addition to that, Western Copper is 1.6 times more volatile than Atrium Ljungberg AB. It trades about 0.0 of its total potential returns per unit of risk. Atrium Ljungberg AB is currently generating about 0.04 per unit of volatility. If you would invest 1,436 in Atrium Ljungberg AB on September 14, 2024 and sell it today you would earn a total of 238.00 from holding Atrium Ljungberg AB or generate 16.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Atrium Ljungberg AB
Performance |
| Timeline |
| Western Copper |
| Atrium Ljungberg |
Western Copper and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Atrium Ljungberg
The main advantage of trading using opposite Western Copper and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| Western Copper vs. BHP Group Limited | Western Copper vs. Vale SA | Western Copper vs. Superior Plus Corp | Western Copper vs. SIVERS SEMICONDUCTORS AB |
| Atrium Ljungberg vs. ADRIATIC METALS LS 013355 | Atrium Ljungberg vs. Jacquet Metal Service | Atrium Ljungberg vs. GREENX METALS LTD | Atrium Ljungberg vs. Western Copper and |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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