Correlation Between Focus Home and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Focus Home and GALENA MINING 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 Focus Home and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Home Interactive and GALENA MINING LTD, you can compare the effects of market volatilities on Focus Home and GALENA MINING 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 Focus Home with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Home and GALENA MINING.
Diversification Opportunities for Focus Home and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Focus Home Interactive and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD and Focus Home 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 Focus Home Interactive are associated (or correlated) with GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of Focus Home i.e., Focus Home and GALENA MINING go up and down completely randomly.
Pair Corralation between Focus Home and GALENA MINING
If you would invest 798.00 in Focus Home Interactive on October 12, 2024 and sell it today you would earn a total of 1,422 from holding Focus Home Interactive or generate 178.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Focus Home Interactive vs. GALENA MINING LTD
Performance |
| Timeline |
| Focus Home Interactive |
| GALENA MINING LTD |
Focus Home and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Home and GALENA MINING
The main advantage of trading using opposite Focus Home and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Home position performs unexpectedly, GALENA MINING 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 GALENA MINING will offset losses from the drop in GALENA MINING's long position.| Focus Home vs. AWILCO DRILLING PLC | Focus Home vs. BORR DRILLING NEW | Focus Home vs. Neinor Homes SA | Focus Home vs. American Homes 4 |
| GALENA MINING vs. WisdomTree Investments | GALENA MINING vs. CHRYSALIS INVESTMENTS LTD | GALENA MINING vs. JLF INVESTMENT | GALENA MINING vs. Keck Seng Investments |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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