Correlation Between Galena Mining and Lendlease
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Lendlease 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 Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Lendlease Group, you can compare the effects of market volatilities on Galena Mining and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Lendlease.
Diversification Opportunities for Galena Mining and Lendlease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Galena Mining i.e., Galena Mining and Lendlease go up and down completely randomly.
Pair Corralation between Galena Mining and Lendlease
If you would invest 677.00 in Lendlease Group on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Lendlease Group or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Galena Mining vs. Lendlease Group
Performance |
| Timeline |
| Galena Mining |
| Lendlease Group |
Galena Mining and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Lendlease
The main advantage of trading using opposite Galena Mining and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease'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 |
| Lendlease vs. Scentre Group | Lendlease vs. Vicinity Centres Re | Lendlease vs. Charter Hall Retail | Lendlease vs. Cromwell Property Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance |