Correlation Between Western Copper and Afentra PLC
Can any of the company-specific risk be diversified away by investing in both Western Copper and Afentra PLC 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 Afentra PLC 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 Afentra PLC, you can compare the effects of market volatilities on Western Copper and Afentra PLC 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 Afentra PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Afentra PLC.
Diversification Opportunities for Western Copper and Afentra PLC
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Western and Afentra is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Afentra PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afentra PLC 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 Afentra PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afentra PLC has no effect on the direction of Western Copper i.e., Western Copper and Afentra PLC go up and down completely randomly.
Pair Corralation between Western Copper and Afentra PLC
If you would invest 110.00 in Western Copper and on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Western Copper and or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Western Copper and vs. Afentra PLC
Performance |
| Timeline |
| Western Copper |
| Afentra PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Copper and Afentra PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Afentra PLC
The main advantage of trading using opposite Western Copper and Afentra PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, Afentra PLC 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 Afentra PLC will offset losses from the drop in Afentra PLC'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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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