Correlation Between Wheaton Precious and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious and Sibanye Stillwater 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 Wheaton Precious and Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheaton Precious Metals and Sibanye Stillwater Limited, you can compare the effects of market volatilities on Wheaton Precious and Sibanye Stillwater 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 Wheaton Precious with a short position of Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and Sibanye Stillwater.
Diversification Opportunities for Wheaton Precious and Sibanye Stillwater
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wheaton and Sibanye is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater and Wheaton Precious 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 Wheaton Precious Metals are associated (or correlated) with Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between Wheaton Precious and Sibanye Stillwater
If you would invest 91.00 in Sibanye Stillwater Limited on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Sibanye Stillwater Limited or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Wheaton Precious Metals vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| Wheaton Precious Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Sibanye Stillwater |
Wheaton Precious and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and Sibanye Stillwater
The main advantage of trading using opposite Wheaton Precious and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| Wheaton Precious vs. ZURICH INSURANCE GROUP | Wheaton Precious vs. Zijin Mining Group | Wheaton Precious vs. Clean Energy Fuels | Wheaton Precious vs. Reinsurance Group of |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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