Correlation Between Western Copper and APACHE
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By analyzing existing cross correlation between Western Copper and and APACHE P 425, you can compare the effects of market volatilities on Western Copper and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and APACHE.
Diversification Opportunities for Western Copper and APACHE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and APACHE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and APACHE P 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 425 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 425 has no effect on the direction of Western Copper i.e., Western Copper and APACHE go up and down completely randomly.
Pair Corralation between Western Copper and APACHE
Considering the 90-day investment horizon Western Copper is expected to generate 3.89 times less return on investment than APACHE. In addition to that, Western Copper is 1.0 times more volatile than APACHE P 425. It trades about 0.05 of its total potential returns per unit of risk. APACHE P 425 is currently generating about 0.18 per unit of volatility. If you would invest 6,977 in APACHE P 425 on November 27, 2024 and sell it today you would earn a total of 345.00 from holding APACHE P 425 or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Western Copper and vs. APACHE P 425
Performance |
| Timeline |
| Western Copper |
| APACHE P 425 |
Western Copper and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and APACHE
The main advantage of trading using opposite Western Copper and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE'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 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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