Correlation Between Winsome Resources and CanAlaska Uranium
Can any of the company-specific risk be diversified away by investing in both Winsome Resources and CanAlaska Uranium 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 Winsome Resources and CanAlaska Uranium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winsome Resources Limited and CanAlaska Uranium, you can compare the effects of market volatilities on Winsome Resources and CanAlaska Uranium 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 Winsome Resources with a short position of CanAlaska Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winsome Resources and CanAlaska Uranium.
Diversification Opportunities for Winsome Resources and CanAlaska Uranium
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Winsome and CanAlaska is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Winsome Resources Limited and CanAlaska Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanAlaska Uranium and Winsome Resources 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 Winsome Resources Limited are associated (or correlated) with CanAlaska Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanAlaska Uranium has no effect on the direction of Winsome Resources i.e., Winsome Resources and CanAlaska Uranium go up and down completely randomly.
Pair Corralation between Winsome Resources and CanAlaska Uranium
Assuming the 90 days horizon Winsome Resources Limited is expected to under-perform the CanAlaska Uranium. In addition to that, Winsome Resources is 1.73 times more volatile than CanAlaska Uranium. It trades about -0.14 of its total potential returns per unit of risk. CanAlaska Uranium is currently generating about -0.11 per unit of volatility. If you would invest 62.00 in CanAlaska Uranium on November 21, 2024 and sell it today you would lose (7.00) from holding CanAlaska Uranium or give up 11.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Winsome Resources Limited vs. CanAlaska Uranium
Performance |
| Timeline |
| Winsome Resources |
| CanAlaska Uranium |
Winsome Resources and CanAlaska Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winsome Resources and CanAlaska Uranium
The main advantage of trading using opposite Winsome Resources and CanAlaska Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winsome Resources position performs unexpectedly, CanAlaska Uranium 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 CanAlaska Uranium will offset losses from the drop in CanAlaska Uranium's long position.| Winsome Resources vs. Inhibrx | Winsome Resources vs. Genfit | Winsome Resources vs. Summit Therapeutics PLC | Winsome Resources vs. Kontoor Brands |
| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Lotus Resources Limited | CanAlaska Uranium vs. Salazar Resources Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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