Correlation Between BII Railway and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both BII Railway 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 BII Railway and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BII Railway Transportation and GALENA MINING LTD, you can compare the effects of market volatilities on BII Railway 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 BII Railway with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BII Railway and GALENA MINING.
Diversification Opportunities for BII Railway and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BII and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BII Railway Transportation 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 BII Railway 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 BII Railway Transportation 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 BII Railway i.e., BII Railway and GALENA MINING go up and down completely randomly.
Pair Corralation between BII Railway and GALENA MINING
If you would invest 2.60 in BII Railway Transportation on September 26, 2024 and sell it today you would earn a total of 0.20 from holding BII Railway Transportation or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BII Railway Transportation vs. GALENA MINING LTD
Performance |
| Timeline |
| BII Railway Transpor |
| GALENA MINING LTD |
BII Railway and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BII Railway and GALENA MINING
The main advantage of trading using opposite BII Railway and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BII Railway 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.| BII Railway vs. Accenture plc | BII Railway vs. International Business Machines | BII Railway vs. Infosys Limited | BII Railway vs. Cognizant Technology Solutions |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |