Correlation Between Galena Mining and Dexus Convenience
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Dexus Convenience 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 Dexus Convenience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Dexus Convenience Retail, you can compare the effects of market volatilities on Galena Mining and Dexus Convenience 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 Dexus Convenience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Dexus Convenience.
Diversification Opportunities for Galena Mining and Dexus Convenience
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Dexus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Dexus Convenience Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexus Convenience Retail 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 Dexus Convenience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexus Convenience Retail has no effect on the direction of Galena Mining i.e., Galena Mining and Dexus Convenience go up and down completely randomly.
Pair Corralation between Galena Mining and Dexus Convenience
If you would invest 285.00 in Dexus Convenience Retail on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Dexus Convenience Retail or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galena Mining vs. Dexus Convenience Retail
Performance |
| Timeline |
| Galena Mining |
| Dexus Convenience Retail |
Galena Mining and Dexus Convenience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Dexus Convenience
The main advantage of trading using opposite Galena Mining and Dexus Convenience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Dexus Convenience 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 Dexus Convenience will offset losses from the drop in Dexus Convenience's long position.| Galena Mining vs. Northern Star Resources | Galena Mining vs. Evolution Mining | Galena Mining vs. Bluescope Steel | Galena Mining vs. Aneka Tambang Tbk |
| Dexus Convenience vs. Seven West Media | Dexus Convenience vs. Carlton Investments | Dexus Convenience vs. Clime Investment Management | Dexus Convenience vs. Centaurus Metals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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