Correlation Between Galena Mining and Auswide Bank
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Auswide Bank 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 Galena Mining and Auswide Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Auswide Bank, you can compare the effects of market volatilities on Galena Mining and Auswide Bank 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 Galena Mining with a short position of Auswide Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Auswide Bank.
Diversification Opportunities for Galena Mining and Auswide Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Auswide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Auswide Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auswide Bank and Galena Mining 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 Galena Mining are associated (or correlated) with Auswide Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auswide Bank has no effect on the direction of Galena Mining i.e., Galena Mining and Auswide Bank go up and down completely randomly.
Pair Corralation between Galena Mining and Auswide Bank
Assuming the 90 days trading horizon Galena Mining is expected to under-perform the Auswide Bank. In addition to that, Galena Mining is 3.16 times more volatile than Auswide Bank. It trades about -0.05 of its total potential returns per unit of risk. Auswide Bank is currently generating about -0.01 per unit of volatility. If you would invest 523.00 in Auswide Bank on September 20, 2024 and sell it today you would lose (70.00) from holding Auswide Bank or give up 13.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galena Mining vs. Auswide Bank
Performance |
| Timeline |
| Galena Mining |
| Auswide Bank |
Galena Mining and Auswide Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Auswide Bank
The main advantage of trading using opposite Galena Mining and Auswide Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Auswide Bank 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 Auswide Bank will offset losses from the drop in Auswide Bank's long position.| Galena Mining vs. Autosports Group | Galena Mining vs. Queste Communications | Galena Mining vs. Aurelia Metals | Galena Mining vs. Homeco Daily Needs |
| Auswide Bank vs. Clime Investment Management | Auswide Bank vs. Cleanaway Waste Management | Auswide Bank vs. Global Data Centre | Auswide Bank vs. Aristocrat Leisure |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |