Correlation Between Catalyst Metals and Galena Mining
Can any of the company-specific risk be diversified away by investing in both Catalyst Metals 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 Catalyst Metals and Galena Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Metals and Galena Mining, you can compare the effects of market volatilities on Catalyst Metals 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 Catalyst Metals with a short position of Galena Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Metals and Galena Mining.
Diversification Opportunities for Catalyst Metals and Galena Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Galena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Metals and Galena Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galena Mining and Catalyst Metals 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 Catalyst Metals 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 Catalyst Metals i.e., Catalyst Metals and Galena Mining go up and down completely randomly.
Pair Corralation between Catalyst Metals and Galena Mining
If you would invest 5.90 in Galena Mining on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Galena Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Catalyst Metals vs. Galena Mining
Performance |
| Timeline |
| Catalyst Metals |
| Galena Mining |
Catalyst Metals and Galena Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Metals and Galena Mining
The main advantage of trading using opposite Catalyst Metals and Galena Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Metals 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.| Catalyst Metals vs. Northern Star Resources | Catalyst Metals vs. Evolution Mining | Catalyst Metals vs. Aneka Tambang Tbk | Catalyst Metals vs. Sandfire Resources NL |
| Galena Mining vs. Northern Star Resources | Galena Mining vs. Evolution Mining | Galena Mining vs. Bluescope Steel | Galena Mining vs. Aneka Tambang Tbk |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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