Correlation Between Western Copper and Apple
Can any of the company-specific risk be diversified away by investing in both Western Copper and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Western Copper and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Apple.
Diversification Opportunities for Western Copper and Apple
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Apple is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Western Copper i.e., Western Copper and Apple go up and down completely randomly.
Pair Corralation between Western Copper and Apple
Assuming the 90 days trading horizon Western Copper and is expected to generate 2.47 times more return on investment than Apple. However, Western Copper is 2.47 times more volatile than Apple Inc. It trades about 0.06 of its potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of risk. If you would invest 102.00 in Western Copper and on October 11, 2024 and sell it today you would earn a total of 2.00 from holding Western Copper and or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Apple Inc
Performance |
| Timeline |
| Western Copper |
| Apple Inc |
Western Copper and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Apple
The main advantage of trading using opposite Western Copper and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Western Copper vs. MAGNUM MINING EXP | Western Copper vs. Forsys Metals Corp | Western Copper vs. Mitsui Chemicals | Western Copper vs. GREENX METALS LTD |
| Apple vs. CVR Medical Corp | Apple vs. Western Copper and | Apple vs. GLOBUS MEDICAL A | Apple vs. SPECTRAL MEDICAL |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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