Correlation Between Fortescue Metals and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Fortescue 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 Fortescue 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 Fortescue Metals Group and GALENA MINING LTD, you can compare the effects of market volatilities on Fortescue 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 Fortescue Metals with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortescue Metals and GALENA MINING.
Diversification Opportunities for Fortescue Metals and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortescue and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fortescue Metals Group 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 Fortescue 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 Fortescue Metals 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 LTD has no effect on the direction of Fortescue Metals i.e., Fortescue Metals and GALENA MINING go up and down completely randomly.
Pair Corralation between Fortescue Metals and GALENA MINING
If you would invest 3.05 in GALENA MINING LTD on October 12, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Fortescue Metals Group vs. GALENA MINING LTD
Performance |
| Timeline |
| Fortescue Metals |
| GALENA MINING LTD |
Fortescue Metals and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortescue Metals and GALENA MINING
The main advantage of trading using opposite Fortescue Metals and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortescue 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.| Fortescue Metals vs. Sinopec Shanghai Petrochemical | Fortescue Metals vs. Mitsui Chemicals | Fortescue Metals vs. EBRO FOODS | Fortescue Metals vs. X FAB Silicon Foundries |
| GALENA MINING vs. WisdomTree Investments | GALENA MINING vs. CHRYSALIS INVESTMENTS LTD | GALENA MINING vs. JLF INVESTMENT | GALENA MINING vs. Keck Seng Investments |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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