Correlation Between Western Copper and Canon
Can any of the company-specific risk be diversified away by investing in both Western Copper and Canon 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 Western Copper and Canon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Copper and and Canon Inc, you can compare the effects of market volatilities on Western Copper and Canon 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 Western Copper with a short position of Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Canon.
Diversification Opportunities for Western Copper and Canon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Canon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Canon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Inc and Western Copper 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 Western Copper and are associated (or correlated) with Canon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Inc has no effect on the direction of Western Copper i.e., Western Copper and Canon go up and down completely randomly.
Pair Corralation between Western Copper and Canon
If you would invest (100.00) in Canon Inc on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Canon Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Copper and vs. Canon Inc
Performance |
| Timeline |
| Western Copper |
| Canon Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Copper and Canon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Canon
The main advantage of trading using opposite Western Copper and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Canon 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 Canon will offset losses from the drop in Canon's long position.| Western Copper vs. Fury Gold Mines | Western Copper vs. EMX Royalty Corp | Western Copper vs. Nevada King Gold | Western Copper vs. Aftermath Silver |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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