Correlation Between Galena Mining and Beston Global
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Beston Global 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 Beston Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Beston Global Food, you can compare the effects of market volatilities on Galena Mining and Beston Global 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 Beston Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Beston Global.
Diversification Opportunities for Galena Mining and Beston Global
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Galena and Beston is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Beston Global Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beston Global Food 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 Beston Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beston Global Food has no effect on the direction of Galena Mining i.e., Galena Mining and Beston Global go up and down completely randomly.
Pair Corralation between Galena Mining and Beston Global
Assuming the 90 days trading horizon Galena Mining is expected to under-perform the Beston Global. But the stock apears to be less risky and, when comparing its historical volatility, Galena Mining is 3.07 times less risky than Beston Global. The stock trades about -0.02 of its potential returns per unit of risk. The Beston Global Food is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Beston Global Food on September 4, 2024 and sell it today you would lose (0.70) from holding Beston Global Food or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galena Mining vs. Beston Global Food
Performance |
| Timeline |
| Galena Mining |
| Beston Global Food |
Galena Mining and Beston Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Beston Global
The main advantage of trading using opposite Galena Mining and Beston Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Beston Global 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 Beston Global will offset losses from the drop in Beston Global's long position.| Galena Mining vs. Northern Star Resources | Galena Mining vs. Evolution Mining | Galena Mining vs. Bluescope Steel | Galena Mining vs. Sandfire Resources NL |
| Beston Global vs. Audio Pixels Holdings | Beston Global vs. Norwest Minerals | Beston Global vs. Lindian Resources | Beston Global vs. Resource Base |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |