Correlation Between COSMOSTEEL HLDGS and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and GALENA MINING LTD, you can compare the effects of market volatilities on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and GALENA MINING.
Diversification Opportunities for COSMOSTEEL HLDGS and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COSMOSTEEL and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and GALENA MINING go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and GALENA MINING
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 0.47 times more return on investment than GALENA MINING. However, COSMOSTEEL HLDGS is 2.13 times less risky than GALENA MINING. It trades about 0.0 of its potential returns per unit of risk. GALENA MINING LTD is currently generating about -0.01 per unit of risk. If you would invest 7.56 in COSMOSTEEL HLDGS on September 4, 2024 and sell it today you would lose (1.31) from holding COSMOSTEEL HLDGS or give up 17.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. GALENA MINING LTD
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| GALENA MINING LTD |
COSMOSTEEL HLDGS and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and GALENA MINING
The main advantage of trading using opposite COSMOSTEEL HLDGS and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS 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.| COSMOSTEEL HLDGS vs. TOTAL GABON | COSMOSTEEL HLDGS vs. Walgreens Boots Alliance | COSMOSTEEL HLDGS vs. Peak Resources Limited |
| GALENA MINING vs. CDL INVESTMENT | GALENA MINING vs. SLR Investment Corp | GALENA MINING vs. ECHO INVESTMENT ZY | GALENA MINING vs. SEI 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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