Correlation Between Winshear Gold and INTEL CDR
Can any of the company-specific risk be diversified away by investing in both Winshear Gold and INTEL CDR 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 Winshear Gold and INTEL CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winshear Gold Corp and INTEL CDR, you can compare the effects of market volatilities on Winshear Gold and INTEL CDR 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 Winshear Gold with a short position of INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winshear Gold and INTEL CDR.
Diversification Opportunities for Winshear Gold and INTEL CDR
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Winshear and INTEL is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Winshear Gold Corp and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR and Winshear 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 Winshear Gold Corp are associated (or correlated) with INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of Winshear Gold i.e., Winshear Gold and INTEL CDR go up and down completely randomly.
Pair Corralation between Winshear Gold and INTEL CDR
Assuming the 90 days trading horizon Winshear Gold Corp is expected to generate 3.64 times more return on investment than INTEL CDR. However, Winshear Gold is 3.64 times more volatile than INTEL CDR. It trades about 0.01 of its potential returns per unit of risk. INTEL CDR is currently generating about -0.4 per unit of risk. If you would invest 16.00 in Winshear Gold Corp on September 12, 2024 and sell it today you would lose (1.00) from holding Winshear Gold Corp or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winshear Gold Corp vs. INTEL CDR
Performance |
| Timeline |
| Winshear Gold Corp |
| INTEL CDR |
Winshear Gold and INTEL CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winshear Gold and INTEL CDR
The main advantage of trading using opposite Winshear Gold and INTEL CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winshear Gold position performs unexpectedly, INTEL CDR 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 INTEL CDR will offset losses from the drop in INTEL CDR's long position.| Winshear Gold vs. Atrium Mortgage Investment | Winshear Gold vs. Postmedia Network Canada | Winshear Gold vs. Canaf Investments | Winshear Gold vs. Thunderbird Entertainment Group |
| INTEL CDR vs. SalesforceCom CDR | INTEL CDR vs. 2028 Investment Grade | INTEL CDR vs. Cogeco Communications | INTEL CDR vs. Endeavour Silver 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 Stocks Directory module to find actively traded stocks across global markets.
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