Correlation Between Xtract One and Winshear Gold
Can any of the company-specific risk be diversified away by investing in both Xtract One and Winshear Gold 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 Xtract One and Winshear Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtract One Technologies and Winshear Gold Corp, you can compare the effects of market volatilities on Xtract One and Winshear Gold 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 Xtract One with a short position of Winshear Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtract One and Winshear Gold.
Diversification Opportunities for Xtract One and Winshear Gold
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xtract and Winshear is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xtract One Technologies and Winshear Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winshear Gold Corp and Xtract One 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 Xtract One Technologies are associated (or correlated) with Winshear Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winshear Gold Corp has no effect on the direction of Xtract One i.e., Xtract One and Winshear Gold go up and down completely randomly.
Pair Corralation between Xtract One and Winshear Gold
Assuming the 90 days trading horizon Xtract One Technologies is expected to under-perform the Winshear Gold. But the stock apears to be less risky and, when comparing its historical volatility, Xtract One Technologies is 4.29 times less risky than Winshear Gold. The stock trades about -0.01 of its potential returns per unit of risk. The Winshear Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Winshear Gold Corp on September 2, 2024 and sell it today you would lose (42.00) from holding Winshear Gold Corp or give up 71.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtract One Technologies vs. Winshear Gold Corp
Performance |
| Timeline |
| Xtract One Technologies |
| Winshear Gold Corp |
Xtract One and Winshear Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtract One and Winshear Gold
The main advantage of trading using opposite Xtract One and Winshear Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtract One position performs unexpectedly, Winshear Gold 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 Winshear Gold will offset losses from the drop in Winshear Gold's long position.| Xtract One vs. Millennium Silver Corp | Xtract One vs. Costco Wholesale Corp | Xtract One vs. Faction Investment Group | Xtract One vs. Perseus Mining |
| Winshear Gold vs. Caribbean Utilities | Winshear Gold vs. Nicola Mining | Winshear Gold vs. Monument Mining Limited | Winshear Gold vs. NeXGold Mining Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |