Correlation Between Mattamy and Western Copper
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By analyzing existing cross correlation between Mattamy Group 4625 and Western Copper and, you can compare the effects of market volatilities on Mattamy 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 Mattamy with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattamy and Western Copper.
Diversification Opportunities for Mattamy and Western Copper
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mattamy and Western is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mattamy Group 4625 and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and Mattamy 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 Mattamy Group 4625 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 Mattamy i.e., Mattamy and Western Copper go up and down completely randomly.
Pair Corralation between Mattamy and Western Copper
Assuming the 90 days trading horizon Mattamy Group 4625 is expected to generate 0.16 times more return on investment than Western Copper. However, Mattamy Group 4625 is 6.38 times less risky than Western Copper. It trades about 0.13 of its potential returns per unit of risk. Western Copper and is currently generating about -0.09 per unit of risk. If you would invest 9,322 in Mattamy Group 4625 on November 3, 2024 and sell it today you would earn a total of 99.00 from holding Mattamy Group 4625 or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattamy Group 4625 vs. Western Copper and
Performance |
| Timeline |
| Mattamy Group 4625 |
| Western Copper |
Mattamy and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattamy and Western Copper
The main advantage of trading using opposite Mattamy and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattamy 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.| Mattamy vs. Biglari Holdings | Mattamy vs. Boyd Gaming | Mattamy vs. RCI Hospitality Holdings | Mattamy vs. Willscot Mobile Mini |
| Western Copper vs. Fury Gold Mines | Western Copper vs. EMX Royalty Corp | Western Copper vs. Nevada King Gold | Western Copper vs. Aftermath Silver |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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