Correlation Between Wheaton Precious and Anglo Eastern
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious and Anglo Eastern 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 Anglo Eastern 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 Anglo Eastern Plantations PLC, you can compare the effects of market volatilities on Wheaton Precious and Anglo Eastern 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 Anglo Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and Anglo Eastern.
Diversification Opportunities for Wheaton Precious and Anglo Eastern
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wheaton and Anglo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and Anglo Eastern Plantations PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Eastern Planta 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 Anglo Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Eastern Planta has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and Anglo Eastern go up and down completely randomly.
Pair Corralation between Wheaton Precious and Anglo Eastern
Assuming the 90 days trading horizon Wheaton Precious Metals is expected to generate 1.98 times more return on investment than Anglo Eastern. However, Wheaton Precious is 1.98 times more volatile than Anglo Eastern Plantations PLC. It trades about 0.05 of its potential returns per unit of risk. Anglo Eastern Plantations PLC is currently generating about 0.02 per unit of risk. If you would invest 382,601 in Wheaton Precious Metals on September 14, 2024 and sell it today you would earn a total of 108,399 from holding Wheaton Precious Metals or generate 28.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheaton Precious Metals vs. Anglo Eastern Plantations PLC
Performance |
| Timeline |
| Wheaton Precious Metals |
| Anglo Eastern Planta |
Wheaton Precious and Anglo Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and Anglo Eastern
The main advantage of trading using opposite Wheaton Precious and Anglo Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious position performs unexpectedly, Anglo Eastern 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 Anglo Eastern will offset losses from the drop in Anglo Eastern's long position.| Wheaton Precious vs. Givaudan SA | Wheaton Precious vs. Antofagasta PLC | Wheaton Precious vs. Ferrexpo PLC | Wheaton Precious vs. Atalaya Mining |
| Anglo Eastern vs. Futura Medical | Anglo Eastern vs. CVS Health Corp | Anglo Eastern vs. CompuGroup Medical AG | Anglo Eastern vs. Creo Medical Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |