Correlation Between WHITE and Western Copper
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By analyzing existing cross correlation between WHITE CAP BUYER and Western Copper and, you can compare the effects of market volatilities on WHITE 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 WHITE with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHITE and Western Copper.
Diversification Opportunities for WHITE and Western Copper
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WHITE and Western is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding WHITE CAP BUYER and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and WHITE 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 WHITE CAP BUYER 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 WHITE i.e., WHITE and Western Copper go up and down completely randomly.
Pair Corralation between WHITE and Western Copper
Assuming the 90 days trading horizon WHITE CAP BUYER is expected to generate 0.16 times more return on investment than Western Copper. However, WHITE CAP BUYER is 6.43 times less risky than Western Copper. It trades about 0.08 of its potential returns per unit of risk. Western Copper and is currently generating about -0.01 per unit of risk. If you would invest 8,988 in WHITE CAP BUYER on September 12, 2024 and sell it today you would earn a total of 1,088 from holding WHITE CAP BUYER or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.01% |
| Values | Daily Returns |
WHITE CAP BUYER vs. Western Copper and
Performance |
| Timeline |
| WHITE CAP BUYER |
| Western Copper |
WHITE and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHITE and Western Copper
The main advantage of trading using opposite WHITE and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHITE 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.| WHITE vs. Western Copper and | WHITE vs. Kandi Technologies Group | WHITE vs. Highway Holdings Limited | WHITE vs. Grupo Televisa SAB |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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