Correlation Between Winpak and QC Copper
Can any of the company-specific risk be diversified away by investing in both Winpak and QC Copper 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 Winpak and QC Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winpak and QC Copper and, you can compare the effects of market volatilities on Winpak and QC 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 Winpak with a short position of QC Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winpak and QC Copper.
Diversification Opportunities for Winpak and QC Copper
Pay attention - limited upside
The 3 months correlation between Winpak and QCCU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Winpak and QC Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QC Copper and Winpak 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 Winpak are associated (or correlated) with QC Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QC Copper has no effect on the direction of Winpak i.e., Winpak and QC Copper go up and down completely randomly.
Pair Corralation between Winpak and QC Copper
Assuming the 90 days trading horizon Winpak is expected to generate 0.36 times more return on investment than QC Copper. However, Winpak is 2.76 times less risky than QC Copper. It trades about 0.12 of its potential returns per unit of risk. QC Copper and is currently generating about 0.02 per unit of risk. If you would invest 4,508 in Winpak on September 12, 2024 and sell it today you would earn a total of 450.00 from holding Winpak or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winpak vs. QC Copper and
Performance |
| Timeline |
| Winpak |
| QC Copper |
Winpak and QC Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winpak and QC Copper
The main advantage of trading using opposite Winpak and QC Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winpak position performs unexpectedly, QC 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 QC Copper will offset losses from the drop in QC Copper's long position.| Winpak vs. Ocumetics Technology Corp | Winpak vs. Highwood Asset Management | Winpak vs. Brookfield Asset Management | Winpak vs. Verizon Communications CDR |
| QC Copper vs. Ressources Minieres Radisson | QC Copper vs. Galantas Gold Corp | QC Copper vs. Red Pine Exploration | QC Copper vs. Kore Mining |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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