Correlation Between KAUFMAN ET and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both KAUFMAN ET 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 KAUFMAN ET and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KAUFMAN ET BROAD and GALENA MINING LTD, you can compare the effects of market volatilities on KAUFMAN ET 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 KAUFMAN ET with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of KAUFMAN ET and GALENA MINING.
Diversification Opportunities for KAUFMAN ET and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KAUFMAN and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KAUFMAN ET BROAD 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 KAUFMAN ET 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 KAUFMAN ET BROAD 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 KAUFMAN ET i.e., KAUFMAN ET and GALENA MINING go up and down completely randomly.
Pair Corralation between KAUFMAN ET and GALENA MINING
If you would invest 3.05 in GALENA MINING LTD on September 26, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
KAUFMAN ET BROAD vs. GALENA MINING LTD
Performance |
| Timeline |
| KAUFMAN ET BROAD |
| GALENA MINING LTD |
KAUFMAN ET and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KAUFMAN ET and GALENA MINING
The main advantage of trading using opposite KAUFMAN ET and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KAUFMAN ET 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.The idea behind KAUFMAN ET BROAD and GALENA MINING LTD 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.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Liontown Resources Limited | GALENA MINING vs. NEXA RESOURCES SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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