Correlation Between Westhaven Gold and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Westhaven Gold and Advantage Solutions 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 Westhaven Gold and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westhaven Gold Corp and Advantage Solutions, you can compare the effects of market volatilities on Westhaven Gold and Advantage Solutions 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 Westhaven Gold with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westhaven Gold and Advantage Solutions.
Diversification Opportunities for Westhaven Gold and Advantage Solutions
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Westhaven and Advantage is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Westhaven Gold Corp and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Westhaven Gold 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 Westhaven Gold Corp are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Westhaven Gold i.e., Westhaven Gold and Advantage Solutions go up and down completely randomly.
Pair Corralation between Westhaven Gold and Advantage Solutions
Assuming the 90 days horizon Westhaven Gold Corp is expected to generate 0.56 times more return on investment than Advantage Solutions. However, Westhaven Gold Corp is 1.8 times less risky than Advantage Solutions. It trades about -0.04 of its potential returns per unit of risk. Advantage Solutions is currently generating about -0.04 per unit of risk. If you would invest 8.57 in Westhaven Gold Corp on September 12, 2024 and sell it today you would lose (0.76) from holding Westhaven Gold Corp or give up 8.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Westhaven Gold Corp vs. Advantage Solutions
Performance |
| Timeline |
| Westhaven Gold Corp |
| Advantage Solutions |
Westhaven Gold and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westhaven Gold and Advantage Solutions
The main advantage of trading using opposite Westhaven Gold and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westhaven Gold position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Westhaven Gold vs. Precipitate Gold Corp | Westhaven Gold vs. Hummingbird Resources PLC | Westhaven Gold vs. Klondike Gold Corp | Westhaven Gold vs. Exploits Discovery Corp |
| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. HUMANA INC |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |