Correlation Between Global Gas and Western Copper
Can any of the company-specific risk be diversified away by investing in both Global Gas 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 Global Gas and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gas and Western Copper and, you can compare the effects of market volatilities on Global Gas 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 Global Gas with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gas and Western Copper.
Diversification Opportunities for Global Gas and Western Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Gas and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and Global Gas 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 Global Gas 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 Global Gas i.e., Global Gas and Western Copper go up and down completely randomly.
Pair Corralation between Global Gas and Western Copper
If you would invest (100.00) in Global Gas on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Global Gas or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global Gas vs. Western Copper and
Performance |
| Timeline |
| Global Gas |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Western Copper |
Global Gas and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gas and Western Copper
The main advantage of trading using opposite Global Gas and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gas 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.| Global Gas vs. Mattel Inc | Global Gas vs. Flutter Entertainment plc | Global Gas vs. Dominos Pizza Common | Global Gas vs. Starbucks |
| Western Copper vs. Fury Gold Mines | Western Copper vs. EMX Royalty Corp | Western Copper vs. Nevada King Gold | Western Copper vs. Aftermath Silver |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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