Correlation Between Chuangs China and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and GALENA MINING LTD, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and GALENA MINING.
Diversification Opportunities for Chuangs China and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments 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 Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and GALENA MINING go up and down completely randomly.
Pair Corralation between Chuangs China and GALENA MINING
If you would invest 1.00 in Chuangs China Investments on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Chuangs China Investments vs. GALENA MINING LTD
Performance |
| Timeline |
| Chuangs China Investments |
| GALENA MINING LTD |
Chuangs China and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and GALENA MINING
The main advantage of trading using opposite Chuangs China and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. SHIN ETSU CHEMICAL | Chuangs China vs. URBAN OUTFITTERS | Chuangs China vs. Quaker Chemical | Chuangs China vs. DEVRY EDUCATION GRP |
| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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