Correlation Between Westhaven Ventures and Canuc Resources
Can any of the company-specific risk be diversified away by investing in both Westhaven Ventures and Canuc Resources 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 Westhaven Ventures and Canuc Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westhaven Ventures and Canuc Resources Corp, you can compare the effects of market volatilities on Westhaven Ventures and Canuc Resources 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 Westhaven Ventures with a short position of Canuc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westhaven Ventures and Canuc Resources.
Diversification Opportunities for Westhaven Ventures and Canuc Resources
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westhaven and Canuc is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Westhaven Ventures and Canuc Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canuc Resources Corp and Westhaven Ventures 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 Westhaven Ventures are associated (or correlated) with Canuc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canuc Resources Corp has no effect on the direction of Westhaven Ventures i.e., Westhaven Ventures and Canuc Resources go up and down completely randomly.
Pair Corralation between Westhaven Ventures and Canuc Resources
Assuming the 90 days horizon Westhaven Ventures is expected to under-perform the Canuc Resources. In addition to that, Westhaven Ventures is 1.64 times more volatile than Canuc Resources Corp. It trades about -0.09 of its total potential returns per unit of risk. Canuc Resources Corp is currently generating about 0.21 per unit of volatility. If you would invest 6.00 in Canuc Resources Corp on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Canuc Resources Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westhaven Ventures vs. Canuc Resources Corp
Performance |
| Timeline |
| Westhaven Ventures |
| Canuc Resources Corp |
Westhaven Ventures and Canuc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westhaven Ventures and Canuc Resources
The main advantage of trading using opposite Westhaven Ventures and Canuc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westhaven Ventures position performs unexpectedly, Canuc Resources 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 Canuc Resources will offset losses from the drop in Canuc Resources' long position.The idea behind Westhaven Ventures and Canuc Resources Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Canuc Resources vs. iSign Media Solutions | Canuc Resources vs. Mako Mining Corp | Canuc Resources vs. Nicola Mining | Canuc Resources vs. Storage Vault Canada |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |