Correlation Between British Amer and Galena Mining
Can any of the company-specific risk be diversified away by investing in both British Amer 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 British Amer and Galena Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bailador Technology Invest and Galena Mining, you can compare the effects of market volatilities on British Amer 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 British Amer with a short position of Galena Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Galena Mining.
Diversification Opportunities for British Amer and Galena Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and Galena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bailador Technology Invest and Galena Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galena Mining and British Amer 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 Bailador Technology Invest 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 has no effect on the direction of British Amer i.e., British Amer and Galena Mining go up and down completely randomly.
Pair Corralation between British Amer and Galena Mining
If you would invest 121.00 in Bailador Technology Invest on October 28, 2024 and sell it today you would earn a total of 4.00 from holding Bailador Technology Invest or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bailador Technology Invest vs. Galena Mining
Performance |
| Timeline |
| Bailador Technology |
| Galena Mining |
British Amer and Galena Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Galena Mining
The main advantage of trading using opposite British Amer and Galena Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer 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.| British Amer vs. DY6 Metals | British Amer vs. Stelar Metals | British Amer vs. Truscott Mining Corp | British Amer vs. 29Metals |
| Galena Mining vs. Retail Food Group | Galena Mining vs. Macquarie Technology Group | Galena Mining vs. Skycity Entertainment Group | Galena Mining vs. Nine Entertainment Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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