Correlation Between Western Copper and Filo Mining
Can any of the company-specific risk be diversified away by investing in both Western Copper and Filo Mining 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 Filo Mining 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 Filo Mining Corp, you can compare the effects of market volatilities on Western Copper and Filo Mining 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 Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Filo Mining.
Diversification Opportunities for Western Copper and Filo Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Filo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Filo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filo Mining Corp 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 Filo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filo Mining Corp has no effect on the direction of Western Copper i.e., Western Copper and Filo Mining go up and down completely randomly.
Pair Corralation between Western Copper and Filo Mining
Considering the 90-day investment horizon Western Copper is expected to generate 3.06 times less return on investment than Filo Mining. In addition to that, Western Copper is 3.28 times more volatile than Filo Mining Corp. It trades about 0.0 of its total potential returns per unit of risk. Filo Mining Corp is currently generating about 0.03 per unit of volatility. If you would invest 2,268 in Filo Mining Corp on September 2, 2024 and sell it today you would earn a total of 37.00 from holding Filo Mining Corp or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Filo Mining Corp
Performance |
| Timeline |
| Western Copper |
| Filo Mining Corp |
Western Copper and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Filo Mining
The main advantage of trading using opposite Western Copper and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Filo Mining 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 Filo Mining will offset losses from the drop in Filo Mining'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 |
| Filo Mining vs. Lotus Resources Limited | Filo Mining vs. Golden Goliath Resources | Filo Mining vs. Stria Lithium | Filo Mining vs. Monitor Ventures |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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