Correlation Between Wheaton Precious and TERADATA

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

By analyzing existing cross correlation between Wheaton Precious Metals and TERADATA, you can compare the effects of market volatilities on Wheaton Precious and TERADATA 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 Wheaton Precious with a short position of TERADATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and TERADATA.

Diversification Opportunities for Wheaton Precious and TERADATA

-0.29

Correlation Coefficient

Wheaton Precious  TERADATA

Very good diversification

The 3 months correlation between Wheaton and TERADATA is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and TERADATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADATA and Wheaton Precious 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 Wheaton Precious Metals are associated (or correlated) with TERADATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADATA has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and TERADATA go up and down completely randomly.

Pair Corralation between Wheaton Precious and TERADATA

Assuming the 90 days horizon Wheaton Precious Metals is expected to generate 1.33 times more return on investment than TERADATA. However, Wheaton Precious is 1.33 times more volatile than TERADATA. It trades about 0.12 of its potential returns per unit of risk. TERADATA is currently generating about 0.05 per unit of risk. If you would invest  7,136  in Wheaton Precious Metals on April 24, 2025 and sell it today you would earn a total of  1,064  from holding Wheaton Precious Metals or generate 14.91% return on investment over 90 days.

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

Wheaton Precious Metals  vs.  TERADATA

Wheaton Precious Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wheaton Precious Metals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Wheaton Precious reported solid returns over the last few months and may actually be approaching a breakup point.

TERADATA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TERADATA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, TERADATA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Wheaton Precious and TERADATA

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

The idea behind Wheaton Precious Metals and TERADATA 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 Stocks Directory module to find actively traded stocks across global markets.