Correlation Between COSTCO WHOLESALE and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both COSTCO WHOLESALE 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 COSTCO WHOLESALE and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSTCO WHOLESALE CDR and GALENA MINING LTD, you can compare the effects of market volatilities on COSTCO WHOLESALE 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 COSTCO WHOLESALE with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSTCO WHOLESALE and GALENA MINING.
Diversification Opportunities for COSTCO WHOLESALE and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COSTCO and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COSTCO WHOLESALE CDR 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 COSTCO WHOLESALE 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 COSTCO WHOLESALE CDR 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 COSTCO WHOLESALE i.e., COSTCO WHOLESALE and GALENA MINING go up and down completely randomly.
Pair Corralation between COSTCO WHOLESALE and GALENA MINING
If you would invest 2,655 in COSTCO WHOLESALE CDR on September 1, 2024 and sell it today you would earn a total of 305.00 from holding COSTCO WHOLESALE CDR or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
COSTCO WHOLESALE CDR vs. GALENA MINING LTD
Performance |
| Timeline |
| COSTCO WHOLESALE CDR |
| GALENA MINING LTD |
COSTCO WHOLESALE and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSTCO WHOLESALE and GALENA MINING
The main advantage of trading using opposite COSTCO WHOLESALE and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSTCO WHOLESALE 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.| COSTCO WHOLESALE vs. Air Lease | COSTCO WHOLESALE vs. XLMedia PLC | COSTCO WHOLESALE vs. Hollywood Bowl Group | COSTCO WHOLESALE vs. Beijing Media |
| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Liontown Resources Limited | GALENA MINING vs. American Lithium Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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