Correlation Between Galena Mining and Centaurus Metals
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Centaurus Metals 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 Centaurus Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Centaurus Metals, you can compare the effects of market volatilities on Galena Mining and Centaurus Metals 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 Centaurus Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Centaurus Metals.
Diversification Opportunities for Galena Mining and Centaurus Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Centaurus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Centaurus Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaurus Metals 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 Centaurus Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaurus Metals has no effect on the direction of Galena Mining i.e., Galena Mining and Centaurus Metals go up and down completely randomly.
Pair Corralation between Galena Mining and Centaurus Metals
If you would invest 33.00 in Centaurus Metals on October 22, 2024 and sell it today you would earn a total of 3.00 from holding Centaurus Metals or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galena Mining vs. Centaurus Metals
Performance |
| Timeline |
| Galena Mining |
| Centaurus Metals |
Galena Mining and Centaurus Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Centaurus Metals
The main advantage of trading using opposite Galena Mining and Centaurus Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Centaurus Metals 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 Centaurus Metals will offset losses from the drop in Centaurus Metals' long position.| Galena Mining vs. Bank of Queensland | Galena Mining vs. Pinnacle Investment Management | Galena Mining vs. K2 Asset Management | Galena Mining vs. Aussie Broadband |
| Centaurus Metals vs. Northern Star Resources | Centaurus Metals vs. Evolution Mining | Centaurus Metals vs. Bluescope Steel | Centaurus Metals vs. De Grey Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |