Correlation Between Western Copper and GENERAL
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By analyzing existing cross correlation between Western Copper and and GENERAL ELEC CAP, you can compare the effects of market volatilities on Western Copper and GENERAL 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 Copper with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and GENERAL.
Diversification Opportunities for Western Copper and GENERAL
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and GENERAL is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Western Copper 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 Copper and are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Western Copper i.e., Western Copper and GENERAL go up and down completely randomly.
Pair Corralation between Western Copper and GENERAL
Considering the 90-day investment horizon Western Copper and is expected to generate 1.79 times more return on investment than GENERAL. However, Western Copper is 1.79 times more volatile than GENERAL ELEC CAP. It trades about 0.08 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.03 per unit of risk. If you would invest 101.00 in Western Copper and on December 23, 2024 and sell it today you would earn a total of 12.00 from holding Western Copper and or generate 11.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 34.43% |
Values | Daily Returns |
Western Copper and vs. GENERAL ELEC CAP
Performance |
Timeline |
Western Copper |
GENERAL ELEC CAP |
Western Copper and GENERAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Copper and GENERAL
The main advantage of trading using opposite Western Copper and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.Western Copper vs. Fury Gold Mines | Western Copper vs. EMX Royalty Corp | Western Copper vs. Nevada King Gold | Western Copper vs. Aftermath Silver |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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