Correlation Between Wheaton Precious and Compal Electronics
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious and Compal Electronics 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 Compal Electronics 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 Compal Electronics GDR, you can compare the effects of market volatilities on Wheaton Precious and Compal Electronics 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 Compal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and Compal Electronics.
Diversification Opportunities for Wheaton Precious and Compal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wheaton and Compal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and Compal Electronics GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compal Electronics GDR 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 Compal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compal Electronics GDR has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and Compal Electronics go up and down completely randomly.
Pair Corralation between Wheaton Precious and Compal Electronics
If you would invest 310.00 in Compal Electronics GDR on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Compal Electronics GDR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheaton Precious Metals vs. Compal Electronics GDR
Performance |
| Timeline |
| Wheaton Precious Metals |
| Compal Electronics GDR |
Wheaton Precious and Compal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and Compal Electronics
The main advantage of trading using opposite Wheaton Precious and Compal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious position performs unexpectedly, Compal Electronics 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 Compal Electronics will offset losses from the drop in Compal Electronics' long position.| Wheaton Precious vs. Qurate Retail Series | Wheaton Precious vs. Hochschild Mining plc | Wheaton Precious vs. Coor Service Management | Wheaton Precious vs. Endeavour Mining Corp |
| Compal Electronics vs. McEwen Mining | Compal Electronics vs. Europa Metals | Compal Electronics vs. Wheaton Precious Metals | Compal Electronics vs. Atalaya 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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