Correlation Between Western Copper and NCR Corp
Can any of the company-specific risk be diversified away by investing in both Western Copper and NCR Corp 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 NCR Corp 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 NCR Corp Pref, you can compare the effects of market volatilities on Western Copper and NCR Corp 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 NCR Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and NCR Corp.
Diversification Opportunities for Western Copper and NCR Corp
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and NCR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and NCR Corp Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Corp Pref 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 NCR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Corp Pref has no effect on the direction of Western Copper i.e., Western Copper and NCR Corp go up and down completely randomly.
Pair Corralation between Western Copper and NCR Corp
If you would invest 107.00 in Western Copper and on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Western Copper and or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Western Copper and vs. NCR Corp Pref
Performance |
| Timeline |
| Western Copper |
| NCR Corp Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Copper and NCR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and NCR Corp
The main advantage of trading using opposite Western Copper and NCR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, NCR Corp 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 NCR Corp will offset losses from the drop in NCR Corp's long position.| Western Copper vs. NioCorp Developments Ltd | Western Copper vs. Teck Resources Ltd | Western Copper vs. Sigma Lithium Resources | Western Copper vs. MP Materials Corp |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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