Correlation Between Wishpond Technologies and Libero Copper

Can any of the company-specific risk be diversified away by investing in both Wishpond Technologies and Libero Copper 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 Wishpond Technologies and Libero Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wishpond Technologies and Libero Copper Corp, you can compare the effects of market volatilities on Wishpond Technologies and Libero Copper 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 Wishpond Technologies with a short position of Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wishpond Technologies and Libero Copper.

Diversification Opportunities for Wishpond Technologies and Libero Copper

-0.16

Correlation Coefficient

Wishpond Technologies  Libero Copper

Good diversification

The 3 months correlation between Wishpond and Libero is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Wishpond Technologies and Libero Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper Corp and Wishpond Technologies 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 Wishpond Technologies are associated (or correlated) with Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Corp has no effect on the direction of Wishpond Technologies i.e., Wishpond Technologies and Libero Copper go up and down completely randomly.

Pair Corralation between Wishpond Technologies and Libero Copper

Assuming the 90 days trading horizon Wishpond Technologies is expected to generate 0.69 times more return on investment than Libero Copper. However, Wishpond Technologies is 1.44 times less risky than Libero Copper. It trades about 0.06 of its potential returns per unit of risk. Libero Copper Corp is currently generating about -0.07 per unit of risk. If you would invest  32.00  in Wishpond Technologies on October 20, 2024 and sell it today you would earn a total of  1.00  from holding Wishpond Technologies or generate 3.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Wishpond Technologies  vs.  Libero Copper Corp

Wishpond Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wishpond Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Wishpond Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Libero Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Libero Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Wishpond Technologies and Libero Copper

The main advantage of trading using opposite Wishpond Technologies and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wishpond Technologies position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper's long position.

The idea behind Wishpond Technologies and Libero Copper Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.