Correlation Between IMetal Resources and Western Copper
Can any of the company-specific risk be diversified away by investing in both IMetal Resources 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 IMetal Resources and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMetal Resources and Western Copper and, you can compare the effects of market volatilities on IMetal Resources 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 IMetal Resources with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMetal Resources and Western Copper.
Diversification Opportunities for IMetal Resources and Western Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMetal and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iMetal Resources and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and IMetal Resources 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 iMetal Resources 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 IMetal Resources i.e., IMetal Resources and Western Copper go up and down completely randomly.
Pair Corralation between IMetal Resources and Western Copper
Assuming the 90 days horizon IMetal Resources is expected to generate 3.58 times less return on investment than Western Copper. In addition to that, IMetal Resources is 1.07 times more volatile than Western Copper and. It trades about 0.02 of its total potential returns per unit of risk. Western Copper and is currently generating about 0.07 per unit of volatility. If you would invest 151.00 in Western Copper and on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Western Copper and or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iMetal Resources vs. Western Copper and
Performance |
| Timeline |
| iMetal Resources |
| Western Copper |
IMetal Resources and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMetal Resources and Western Copper
The main advantage of trading using opposite IMetal Resources and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMetal Resources 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.| IMetal Resources vs. Solar Alliance Energy | IMetal Resources vs. Global X Active | IMetal Resources vs. Financial 15 Split | IMetal Resources vs. Rubicon Organics |
| Western Copper vs. Solar Alliance Energy | Western Copper vs. Global X Active | Western Copper vs. Financial 15 Split | Western Copper vs. Rubicon Organics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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