Correlation Between PACIFIC and Western Sierra
Specify exactly 2 symbols:
By analyzing existing cross correlation between PACIFIC GAS AND and Western Sierra Mining, you can compare the effects of market volatilities on PACIFIC and Western Sierra 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 PACIFIC with a short position of Western Sierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and Western Sierra.
Diversification Opportunities for PACIFIC and Western Sierra
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PACIFIC and Western is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS AND and Western Sierra Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Sierra Mining and PACIFIC 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 PACIFIC GAS AND are associated (or correlated) with Western Sierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Sierra Mining has no effect on the direction of PACIFIC i.e., PACIFIC and Western Sierra go up and down completely randomly.
Pair Corralation between PACIFIC and Western Sierra
Assuming the 90 days trading horizon PACIFIC GAS AND is expected to under-perform the Western Sierra. In addition to that, PACIFIC is 1.96 times more volatile than Western Sierra Mining. It trades about -0.22 of its total potential returns per unit of risk. Western Sierra Mining is currently generating about 0.0 per unit of volatility. If you would invest 0.68 in Western Sierra Mining on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Western Sierra Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PACIFIC GAS AND vs. Western Sierra Mining
Performance |
| Timeline |
| PACIFIC GAS AND |
| Western Sierra Mining |
PACIFIC and Western Sierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC and Western Sierra
The main advantage of trading using opposite PACIFIC and Western Sierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC position performs unexpectedly, Western Sierra 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 Sierra will offset losses from the drop in Western Sierra's long position.| PACIFIC vs. Western Sierra Mining | PACIFIC vs. Ambev SA ADR | PACIFIC vs. National Beverage Corp | PACIFIC vs. Perseus Mining Limited |
| Western Sierra vs. Green Cures Botanical | Western Sierra vs. Cann American Corp | Western Sierra vs. Rimrock Gold Corp | Western Sierra vs. Galexxy Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |