Correlation Between Canada Rare and Western Copper
Can any of the company-specific risk be diversified away by investing in both Canada Rare 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 Canada Rare and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Rare Earth and Western Copper and, you can compare the effects of market volatilities on Canada Rare 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 Canada Rare with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Rare and Western Copper.
Diversification Opportunities for Canada Rare and Western Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canada and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canada Rare Earth and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and Canada Rare 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 Canada Rare Earth 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 Canada Rare i.e., Canada Rare and Western Copper go up and down completely randomly.
Pair Corralation between Canada Rare and Western Copper
If you would invest 145.00 in Western Copper and on January 16, 2025 and sell it today you would earn a total of 19.00 from holding Western Copper and or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canada Rare Earth vs. Western Copper and
Performance |
| Timeline |
| Canada Rare Earth |
| Western Copper |
Canada Rare and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Rare and Western Copper
The main advantage of trading using opposite Canada Rare and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Rare 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.| Canada Rare vs. InPlay Oil Corp | Canada Rare vs. MiMedia Holdings | Canada Rare vs. Sparx Technology | Canada Rare vs. Evertz Technologies Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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