Correlation Between Finexia Financial and Galena Mining
Can any of the company-specific risk be diversified away by investing in both Finexia Financial 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 Finexia Financial and Galena Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and Galena Mining, you can compare the effects of market volatilities on Finexia Financial 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 Finexia Financial with a short position of Galena Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Galena Mining.
Diversification Opportunities for Finexia Financial and Galena Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finexia and Galena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and Galena Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galena Mining and Finexia Financial 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 Finexia Financial Group 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 Finexia Financial i.e., Finexia Financial and Galena Mining go up and down completely randomly.
Pair Corralation between Finexia Financial and Galena Mining
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 19.6 times more return on investment than Galena Mining. However, Finexia Financial is 19.6 times more volatile than Galena Mining. It trades about 0.03 of its potential returns per unit of risk. Galena Mining is currently generating about -0.06 per unit of risk. If you would invest 27.00 in Finexia Financial Group on September 20, 2024 and sell it today you would earn a total of 2.00 from holding Finexia Financial Group or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. Galena Mining
Performance |
| Timeline |
| Finexia Financial |
| Galena Mining |
Finexia Financial and Galena Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Galena Mining
The main advantage of trading using opposite Finexia Financial and Galena Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial 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.| Finexia Financial vs. Westpac Banking | Finexia Financial vs. National Australia Bank | Finexia Financial vs. National Australia Bank | Finexia Financial vs. National Australia Bank |
| Galena Mining vs. Autosports Group | Galena Mining vs. Queste Communications | Galena Mining vs. Aurelia Metals | Galena Mining vs. Homeco Daily Needs |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |