Correlation Between Paladin Energy and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Paladin Energy and Wheaton Precious 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 Paladin Energy and Wheaton Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paladin Energy and Wheaton Precious Metals, you can compare the effects of market volatilities on Paladin Energy and Wheaton Precious 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 Paladin Energy with a short position of Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paladin Energy and Wheaton Precious.
Diversification Opportunities for Paladin Energy and Wheaton Precious
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Paladin and Wheaton is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Paladin Energy and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals and Paladin Energy 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 Paladin Energy are associated (or correlated) with Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Paladin Energy i.e., Paladin Energy and Wheaton Precious go up and down completely randomly.
Pair Corralation between Paladin Energy and Wheaton Precious
Assuming the 90 days trading horizon Paladin Energy is expected to generate 1.64 times more return on investment than Wheaton Precious. However, Paladin Energy is 1.64 times more volatile than Wheaton Precious Metals. It trades about 0.09 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.11 per unit of risk. If you would invest 590.00 in Paladin Energy on August 16, 2025 and sell it today you would earn a total of 113.00 from holding Paladin Energy or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Paladin Energy vs. Wheaton Precious Metals
Performance |
| Timeline |
| Paladin Energy |
| Wheaton Precious Metals |
Paladin Energy and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paladin Energy and Wheaton Precious
The main advantage of trading using opposite Paladin Energy and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paladin Energy position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| Paladin Energy vs. North American Construction | Paladin Energy vs. Plantify Foods | Paladin Energy vs. Rubicon Organics | Paladin Energy vs. Constellation Software |
| Wheaton Precious vs. Franco Nevada | Wheaton Precious vs. Barrick Gold Corp | Wheaton Precious vs. Kinross Gold Corp | Wheaton Precious vs. Lundin Gold |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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