Correlation Between Western Sierra and Kaiser
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By analyzing existing cross correlation between Western Sierra Mining and Kaiser Permanente, you can compare the effects of market volatilities on Western Sierra and Kaiser 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 Sierra with a short position of Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Sierra and Kaiser.
Diversification Opportunities for Western Sierra and Kaiser
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Kaiser is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Western Sierra Mining and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente and Western Sierra 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 Sierra Mining are associated (or correlated) with Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of Western Sierra i.e., Western Sierra and Kaiser go up and down completely randomly.
Pair Corralation between Western Sierra and Kaiser
Given the investment horizon of 90 days Western Sierra Mining is expected to generate 0.28 times more return on investment than Kaiser. However, Western Sierra Mining is 3.59 times less risky than Kaiser. It trades about 0.0 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.1 per unit of risk. If you would invest 0.68 in Western Sierra Mining on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Western Sierra Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Western Sierra Mining vs. Kaiser Permanente
Performance |
| Timeline |
| Western Sierra Mining |
| Kaiser Permanente |
Western Sierra and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Sierra and Kaiser
The main advantage of trading using opposite Western Sierra and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Sierra position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser's long position.| Western Sierra vs. Green Cures Botanical | Western Sierra vs. Cann American Corp | Western Sierra vs. Galexxy Holdings | Western Sierra vs. Indoor Harvest Corp |
| Kaiser vs. Zijin Mining Group | Kaiser vs. Western Sierra Mining | Kaiser vs. Natural Alternatives International | Kaiser vs. Harmony Gold Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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