Correlation Between Haier Smart and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Haier Smart 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 Haier Smart and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and GALENA MINING LTD, you can compare the effects of market volatilities on Haier Smart 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 Haier Smart with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and GALENA MINING.
Diversification Opportunities for Haier Smart and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haier and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home 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 Haier Smart 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 Haier Smart Home 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 Haier Smart i.e., Haier Smart and GALENA MINING go up and down completely randomly.
Pair Corralation between Haier Smart and GALENA MINING
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 0.29 times more return on investment than GALENA MINING. However, Haier Smart Home is 3.51 times less risky than GALENA MINING. It trades about 0.07 of its potential returns per unit of risk. GALENA MINING LTD is currently generating about -0.02 per unit of risk. If you would invest 95.00 in Haier Smart Home on September 19, 2024 and sell it today you would earn a total of 80.00 from holding Haier Smart Home or generate 84.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Haier Smart Home vs. GALENA MINING LTD
Performance |
| Timeline |
| Haier Smart Home |
| GALENA MINING LTD |
Haier Smart and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and GALENA MINING
The main advantage of trading using opposite Haier Smart and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart 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.| Haier Smart vs. Apple Inc | Haier Smart vs. Apple Inc | Haier Smart vs. Apple Inc | Haier Smart vs. Apple Inc |
| GALENA MINING vs. Iridium Communications | GALENA MINING vs. JLT MOBILE PUTER | GALENA MINING vs. Mobilezone Holding AG | GALENA MINING vs. TIANDE CHEMICAL |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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