Correlation Between BRAEMAR HOTELS and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both BRAEMAR HOTELS 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 BRAEMAR HOTELS and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRAEMAR HOTELS RES and GALENA MINING LTD, you can compare the effects of market volatilities on BRAEMAR HOTELS 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 BRAEMAR HOTELS with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAEMAR HOTELS and GALENA MINING.
Diversification Opportunities for BRAEMAR HOTELS and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRAEMAR and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRAEMAR HOTELS RES 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 BRAEMAR HOTELS 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 BRAEMAR HOTELS RES 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 BRAEMAR HOTELS i.e., BRAEMAR HOTELS and GALENA MINING go up and down completely randomly.
Pair Corralation between BRAEMAR HOTELS and GALENA MINING
If you would invest 253.00 in BRAEMAR HOTELS RES on October 26, 2024 and sell it today you would lose (15.00) from holding BRAEMAR HOTELS RES or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
BRAEMAR HOTELS RES vs. GALENA MINING LTD
Performance |
| Timeline |
| BRAEMAR HOTELS RES |
| GALENA MINING LTD |
BRAEMAR HOTELS and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAEMAR HOTELS and GALENA MINING
The main advantage of trading using opposite BRAEMAR HOTELS and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAEMAR HOTELS 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.| BRAEMAR HOTELS vs. GALENA MINING LTD | BRAEMAR HOTELS vs. Compagnie Plastic Omnium | BRAEMAR HOTELS vs. Zijin Mining Group | BRAEMAR HOTELS vs. GOODYEAR T RUBBER |
| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Mineral 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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