Correlation Between CNJ Capital and Western Copper
Can any of the company-specific risk be diversified away by investing in both CNJ Capital 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 CNJ Capital and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Western Copper and, you can compare the effects of market volatilities on CNJ Capital 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 CNJ Capital with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Western Copper.
Diversification Opportunities for CNJ Capital and Western Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and CNJ Capital 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 CNJ Capital Investments 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 CNJ Capital i.e., CNJ Capital and Western Copper go up and down completely randomly.
Pair Corralation between CNJ Capital and Western Copper
If you would invest 148.00 in Western Copper and on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Western Copper and or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Western Copper and
Performance |
| Timeline |
| CNJ Capital Investments |
| Western Copper |
CNJ Capital and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Western Copper
The main advantage of trading using opposite CNJ Capital and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital 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.| CNJ Capital vs. NovaGold Resources | CNJ Capital vs. HPQ Silicon Resources | CNJ Capital vs. Eastwood Bio Medical Canada | CNJ Capital vs. Diamond Fields Resources |
| Western Copper vs. Kiplin Metals | Western Copper vs. Pure Energy Minerals | Western Copper vs. Noram Lithium Corp | Western Copper vs. Minnova 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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