The following example creates a Popup that is the child of a Canvas, and sets PlacementTarget to ellipse1, so the popup is relative to the Ellipse.
<Canvas Margin="5" Background="Red" Width="200" Height="150" >
<Ellipse Name="ellipse1"
Canvas.Top="60" Canvas.Left="50"
Height="85" Width="60"
Fill="Black"/>
<Popup IsOpen="True" PlacementTarget="{Binding ElementName=ellipse1}">
<TextBlock Background="LightBlue" FontSize="18">This is a Popup</TextBlock>
</Popup>
</Canvas>