Correlation Between White Gold and Westhaven Ventures
Can any of the company-specific risk be diversified away by investing in both White Gold and Westhaven Ventures 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 White Gold and Westhaven Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between White Gold Corp and Westhaven Ventures, you can compare the effects of market volatilities on White Gold and Westhaven Ventures 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 Gold with a short position of Westhaven Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Gold and Westhaven Ventures.
Diversification Opportunities for White Gold and Westhaven Ventures
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between White and Westhaven is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and Westhaven Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westhaven Ventures and White Gold 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 Gold Corp are associated (or correlated) with Westhaven Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westhaven Ventures has no effect on the direction of White Gold i.e., White Gold and Westhaven Ventures go up and down completely randomly.
Pair Corralation between White Gold and Westhaven Ventures
Assuming the 90 days horizon White Gold Corp is expected to generate 0.9 times more return on investment than Westhaven Ventures. However, White Gold Corp is 1.11 times less risky than Westhaven Ventures. It trades about 0.0 of its potential returns per unit of risk. Westhaven Ventures is currently generating about -0.02 per unit of risk. If you would invest 32.00 in White Gold Corp on August 25, 2024 and sell it today you would lose (10.00) from holding White Gold Corp or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
White Gold Corp vs. Westhaven Ventures
Performance |
| Timeline |
| White Gold Corp |
| Westhaven Ventures |
White Gold and Westhaven Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Gold and Westhaven Ventures
The main advantage of trading using opposite White Gold and Westhaven Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Gold position performs unexpectedly, Westhaven Ventures 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 Westhaven Ventures will offset losses from the drop in Westhaven Ventures' long position.| White Gold vs. Sokoman Minerals Corp | White Gold vs. Royal Road Minerals | White Gold vs. Labrador Gold Corp |
| Westhaven Ventures vs. First Majestic Silver | Westhaven Ventures vs. Ivanhoe Energy | Westhaven Ventures vs. Orezone Gold Corp | Westhaven Ventures vs. Faraday Copper Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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