Correlation Between Wheaton Precious and Systemair
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious and Systemair 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 Wheaton Precious and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheaton Precious Metals and Systemair AB, you can compare the effects of market volatilities on Wheaton Precious and Systemair 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 Wheaton Precious with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and Systemair.
Diversification Opportunities for Wheaton Precious and Systemair
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wheaton and Systemair is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Wheaton Precious 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 Wheaton Precious Metals are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and Systemair go up and down completely randomly.
Pair Corralation between Wheaton Precious and Systemair
Assuming the 90 days trading horizon Wheaton Precious Metals is expected to generate 1.23 times more return on investment than Systemair. However, Wheaton Precious is 1.23 times more volatile than Systemair AB. It trades about 0.06 of its potential returns per unit of risk. Systemair AB is currently generating about 0.05 per unit of risk. If you would invest 464,500 in Wheaton Precious Metals on October 21, 2024 and sell it today you would earn a total of 10,500 from holding Wheaton Precious Metals or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheaton Precious Metals vs. Systemair AB
Performance |
| Timeline |
| Wheaton Precious Metals |
| Systemair AB |
Wheaton Precious and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and Systemair
The main advantage of trading using opposite Wheaton Precious and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Wheaton Precious vs. Iron Mountain | Wheaton Precious vs. Automatic Data Processing | Wheaton Precious vs. Axfood AB | Wheaton Precious vs. Eastman Chemical Co |
| Systemair vs. Atresmedia | Systemair vs. Hochschild Mining plc | Systemair vs. Panther Metals PLC | Systemair vs. Wheaton Precious Metals |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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