Correlation Between Giga Metals and Westwater Resources
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Westwater Resources 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 Giga Metals and Westwater Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Westwater Resources, you can compare the effects of market volatilities on Giga Metals and Westwater Resources 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 Giga Metals with a short position of Westwater Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Westwater Resources.
Diversification Opportunities for Giga Metals and Westwater Resources
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Giga and Westwater is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Westwater Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwater Resources and Giga Metals 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 Giga Metals are associated (or correlated) with Westwater Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwater Resources has no effect on the direction of Giga Metals i.e., Giga Metals and Westwater Resources go up and down completely randomly.
Pair Corralation between Giga Metals and Westwater Resources
If you would invest 51.00 in Westwater Resources on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Westwater Resources or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Giga Metals vs. Westwater Resources
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Westwater Resources |
Giga Metals and Westwater Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Westwater Resources
The main advantage of trading using opposite Giga Metals and Westwater Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Westwater Resources 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 Westwater Resources will offset losses from the drop in Westwater Resources' long position.| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel Corp |
| Westwater Resources vs. Mason Graphite | Westwater Resources vs. Northern Graphite | Westwater Resources vs. Graphite One | Westwater Resources vs. Lomiko Metals |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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