Correlation Between Elixxer and Westaim Corp
Can any of the company-specific risk be diversified away by investing in both Elixxer and Westaim Corp 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 Elixxer and Westaim Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixxer and Westaim Corp, you can compare the effects of market volatilities on Elixxer and Westaim Corp 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 Elixxer with a short position of Westaim Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixxer and Westaim Corp.
Diversification Opportunities for Elixxer and Westaim Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elixxer and Westaim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elixxer and Westaim Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westaim Corp and Elixxer 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 Elixxer are associated (or correlated) with Westaim Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westaim Corp has no effect on the direction of Elixxer i.e., Elixxer and Westaim Corp go up and down completely randomly.
Pair Corralation between Elixxer and Westaim Corp
If you would invest 487.00 in Westaim Corp on September 4, 2024 and sell it today you would earn a total of 24.00 from holding Westaim Corp or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elixxer vs. Westaim Corp
Performance |
| Timeline |
| Elixxer |
| Westaim Corp |
Elixxer and Westaim Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixxer and Westaim Corp
The main advantage of trading using opposite Elixxer and Westaim Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixxer position performs unexpectedly, Westaim Corp 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 Westaim Corp will offset losses from the drop in Westaim Corp's long position.| Elixxer vs. Gildan Activewear | Elixxer vs. Open Text Corp | Elixxer vs. Waste Connections | Elixxer vs. CCL Industries |
| Westaim Corp vs. iShares Canadian HYBrid | Westaim Corp vs. Altagas Cum Red | Westaim Corp vs. European Residential Real | Westaim Corp vs. iShares Fundamental Hedged |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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