Correlation Between Oakley Capital and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Oakley Capital and Wheaton Precious 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 Oakley Capital and Wheaton Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakley Capital Investments and Wheaton Precious Metals, you can compare the effects of market volatilities on Oakley Capital and Wheaton Precious 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 Oakley Capital with a short position of Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakley Capital and Wheaton Precious.
Diversification Opportunities for Oakley Capital and Wheaton Precious
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oakley and Wheaton is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oakley Capital Investments and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals and Oakley Capital 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 Oakley Capital Investments are associated (or correlated) with Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Oakley Capital i.e., Oakley Capital and Wheaton Precious go up and down completely randomly.
Pair Corralation between Oakley Capital and Wheaton Precious
Assuming the 90 days trading horizon Oakley Capital is expected to generate 3.24 times less return on investment than Wheaton Precious. But when comparing it to its historical volatility, Oakley Capital Investments is 2.06 times less risky than Wheaton Precious. It trades about 0.03 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 318,225 in Wheaton Precious Metals on August 24, 2024 and sell it today you would earn a total of 189,775 from holding Wheaton Precious Metals or generate 59.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Oakley Capital Investments vs. Wheaton Precious Metals
Performance |
| Timeline |
| Oakley Capital Inves |
| Wheaton Precious Metals |
Oakley Capital and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakley Capital and Wheaton Precious
The main advantage of trading using opposite Oakley Capital and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakley Capital position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| Oakley Capital vs. Beowulf Mining | Oakley Capital vs. Caledonia Mining | Oakley Capital vs. Eastinco Mining Exploration | Oakley Capital vs. Bloomsbury Publishing Plc |
| Wheaton Precious vs. Givaudan SA | Wheaton Precious vs. Antofagasta PLC | Wheaton Precious vs. Centamin PLC | Wheaton Precious vs. Atalaya Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |