Correlation Between Wheaton Precious and CATCo Reinsurance
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious and CATCo Reinsurance 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 CATCo Reinsurance 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 CATCo Reinsurance Opportunities, you can compare the effects of market volatilities on Wheaton Precious and CATCo Reinsurance 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 CATCo Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and CATCo Reinsurance.
Diversification Opportunities for Wheaton Precious and CATCo Reinsurance
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wheaton and CATCo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and CATCo Reinsurance Opportunitie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATCo Reinsurance 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 CATCo Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATCo Reinsurance has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and CATCo Reinsurance go up and down completely randomly.
Pair Corralation between Wheaton Precious and CATCo Reinsurance
If you would invest 3,750 in CATCo Reinsurance Opportunities on September 3, 2024 and sell it today you would earn a total of 0.00 from holding CATCo Reinsurance Opportunities or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Wheaton Precious Metals vs. CATCo Reinsurance Opportunitie
Performance |
| Timeline |
| Wheaton Precious Metals |
| CATCo Reinsurance |
Wheaton Precious and CATCo Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and CATCo Reinsurance
The main advantage of trading using opposite Wheaton Precious and CATCo Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious position performs unexpectedly, CATCo Reinsurance 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 CATCo Reinsurance will offset losses from the drop in CATCo Reinsurance's long position.| Wheaton Precious vs. Roper Technologies | Wheaton Precious vs. Microchip Technology | Wheaton Precious vs. Tyson Foods Cl | Wheaton Precious vs. Uber Technologies |
| CATCo Reinsurance vs. Team Internet Group | CATCo Reinsurance vs. Spirent Communications plc | CATCo Reinsurance vs. Batm Advanced Communications | CATCo Reinsurance vs. Flow Traders NV |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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