Correlation Between Washington Mutual and Contact Gold
Can any of the company-specific risk be diversified away by investing in both Washington Mutual and Contact Gold 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 Washington Mutual and Contact Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Contact Gold Corp, you can compare the effects of market volatilities on Washington Mutual and Contact Gold 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 Washington Mutual with a short position of Contact Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Contact Gold.
Diversification Opportunities for Washington Mutual and Contact Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Washington and Contact is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Contact Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contact Gold Corp and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Contact Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contact Gold Corp has no effect on the direction of Washington Mutual i.e., Washington Mutual and Contact Gold go up and down completely randomly.
Pair Corralation between Washington Mutual and Contact Gold
If you would invest 5,817 in Washington Mutual Investors on November 3, 2024 and sell it today you would earn a total of 584.00 from holding Washington Mutual Investors or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Washington Mutual Investors vs. Contact Gold Corp
Performance |
| Timeline |
| Washington Mutual |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Washington Mutual and Contact Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Contact Gold
The main advantage of trading using opposite Washington Mutual and Contact Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Contact Gold 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 Contact Gold will offset losses from the drop in Contact Gold's long position.| Washington Mutual vs. Amg Managers Centersquare | Washington Mutual vs. Tiaa Cref Real Estate | Washington Mutual vs. Deutsche Real Estate | Washington Mutual vs. Tiaa Cref Real Estate |
| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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