Correlation Between Western Mining and Keeson Technology
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By analyzing existing cross correlation between Western Mining Co and Keeson Technology Corp, you can compare the effects of market volatilities on Western Mining and Keeson Technology 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 Mining with a short position of Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Keeson Technology.
Diversification Opportunities for Western Mining and Keeson Technology
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Keeson is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp and Western Mining 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 Mining Co are associated (or correlated) with Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Western Mining i.e., Western Mining and Keeson Technology go up and down completely randomly.
Pair Corralation between Western Mining and Keeson Technology
Assuming the 90 days trading horizon Western Mining Co is expected to generate 0.84 times more return on investment than Keeson Technology. However, Western Mining Co is 1.19 times less risky than Keeson Technology. It trades about 0.06 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about 0.0 per unit of risk. If you would invest 1,002 in Western Mining Co on November 2, 2024 and sell it today you would earn a total of 741.00 from holding Western Mining Co or generate 73.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Keeson Technology Corp
Performance |
| Timeline |
| Western Mining |
| Keeson Technology Corp |
Western Mining and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Keeson Technology
The main advantage of trading using opposite Western Mining and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining position performs unexpectedly, Keeson Technology 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining vs. Shandong Gold Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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