Correlation Between DATAGROUP and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both DATAGROUP 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 DATAGROUP and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and GALENA MINING LTD, you can compare the effects of market volatilities on DATAGROUP 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 DATAGROUP with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and GALENA MINING.
Diversification Opportunities for DATAGROUP and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DATAGROUP and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE 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 DATAGROUP 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 DATAGROUP SE 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 DATAGROUP i.e., DATAGROUP and GALENA MINING go up and down completely randomly.
Pair Corralation between DATAGROUP and GALENA MINING
Assuming the 90 days trading horizon DATAGROUP SE is expected to under-perform the GALENA MINING. In addition to that, DATAGROUP is 1.3 times more volatile than GALENA MINING LTD. It trades about -0.02 of its total potential returns per unit of risk. GALENA MINING LTD is currently generating about -0.01 per unit of volatility. If you would invest 3.25 in GALENA MINING LTD on September 14, 2024 and sell it today you would lose (0.20) from holding GALENA MINING LTD or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
DATAGROUP SE vs. GALENA MINING LTD
Performance |
| Timeline |
| DATAGROUP SE |
| GALENA MINING LTD |
DATAGROUP and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and GALENA MINING
The main advantage of trading using opposite DATAGROUP and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP 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.| DATAGROUP vs. Compagnie Plastic Omnium | DATAGROUP vs. VIAPLAY GROUP AB | DATAGROUP vs. TRAVEL LEISURE DL 01 | DATAGROUP vs. PLAY2CHILL SA ZY |
| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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