Correlation Between GREENX METALS and Western Copper
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Western Copper 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 GREENX METALS and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Western Copper and, you can compare the effects of market volatilities on GREENX METALS and Western Copper 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 GREENX METALS with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Western Copper.
Diversification Opportunities for GREENX METALS and Western Copper
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENX and Western is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and GREENX METALS 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 GREENX METALS LTD are associated (or correlated) with Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of GREENX METALS i.e., GREENX METALS and Western Copper go up and down completely randomly.
Pair Corralation between GREENX METALS and Western Copper
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Western Copper. But the stock apears to be less risky and, when comparing its historical volatility, GREENX METALS LTD is 1.3 times less risky than Western Copper. The stock trades about -0.07 of its potential returns per unit of risk. The Western Copper and is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Western Copper and on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Western Copper and or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Western Copper and
Performance |
| Timeline |
| GREENX METALS LTD |
| Western Copper |
GREENX METALS and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Western Copper
The main advantage of trading using opposite GREENX METALS and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.| GREENX METALS vs. Carsales | GREENX METALS vs. Apollo Investment Corp | GREENX METALS vs. Keck Seng Investments | GREENX METALS vs. HK Electric Investments |
| Western Copper vs. Chiba Bank | Western Copper vs. T MOBILE US | Western Copper vs. T Mobile | Western Copper vs. GEELY AUTOMOBILE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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