Correlation Between Western Copper and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Western Copper and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Western Copper and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Sligro Food.
Diversification Opportunities for Western Copper and Sligro Food
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Sligro is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Western Copper i.e., Western Copper and Sligro Food go up and down completely randomly.
Pair Corralation between Western Copper and Sligro Food
Considering the 90-day investment horizon Western Copper and is expected to generate 1.34 times more return on investment than Sligro Food. However, Western Copper is 1.34 times more volatile than Sligro Food Group. It trades about -0.01 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.21 per unit of risk. If you would invest 115.00 in Western Copper and on September 13, 2024 and sell it today you would lose (2.00) from holding Western Copper and or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Copper and vs. Sligro Food Group
Performance |
| Timeline |
| Western Copper |
| Sligro Food Group |
Western Copper and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Sligro Food
The main advantage of trading using opposite Western Copper and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Western Copper vs. MP Materials Corp | Western Copper vs. NioCorp Developments Ltd | Western Copper vs. Vale SA ADR | Western Copper vs. Vizsla Resources Corp |
| Sligro Food vs. Sapiens International | Sligro Food vs. Canlan Ice Sports | Sligro Food vs. Mattel Inc | Sligro Food vs. Playa Hotels Resorts |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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