Correlation Between Westaim Corp and Elixxer
Can any of the company-specific risk be diversified away by investing in both Westaim Corp and Elixxer 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 Westaim Corp and Elixxer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westaim Corp and Elixxer, you can compare the effects of market volatilities on Westaim Corp and Elixxer 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 Westaim Corp with a short position of Elixxer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westaim Corp and Elixxer.
Diversification Opportunities for Westaim Corp and Elixxer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westaim and Elixxer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westaim Corp and Elixxer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elixxer and Westaim Corp 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 Westaim Corp are associated (or correlated) with Elixxer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elixxer has no effect on the direction of Westaim Corp i.e., Westaim Corp and Elixxer go up and down completely randomly.
Pair Corralation between Westaim Corp and Elixxer
If you would invest 487.00 in Westaim Corp on September 4, 2024 and sell it today you would earn a total of 24.00 from holding Westaim Corp or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Westaim Corp vs. Elixxer
Performance |
| Timeline |
| Westaim Corp |
| Elixxer |
Westaim Corp and Elixxer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westaim Corp and Elixxer
The main advantage of trading using opposite Westaim Corp and Elixxer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westaim Corp position performs unexpectedly, Elixxer 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 Elixxer will offset losses from the drop in Elixxer's long position.| Westaim Corp vs. iShares Canadian HYBrid | Westaim Corp vs. Altagas Cum Red | Westaim Corp vs. European Residential Real | Westaim Corp vs. iShares Fundamental Hedged |
| Elixxer vs. Gildan Activewear | Elixxer vs. Open Text Corp | Elixxer vs. Waste Connections | Elixxer vs. CCL Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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