Correlation Between Galena Mining and Macquarie Bank
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Macquarie 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 Macquarie 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 Macquarie Bank Limited, you can compare the effects of market volatilities on Galena Mining and Macquarie 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 Macquarie Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Macquarie Bank.
Diversification Opportunities for Galena Mining and Macquarie Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Macquarie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Macquarie Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie 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 Macquarie Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Bank has no effect on the direction of Galena Mining i.e., Galena Mining and Macquarie Bank go up and down completely randomly.
Pair Corralation between Galena Mining and Macquarie Bank
If you would invest 10,359 in Macquarie Bank Limited on September 4, 2024 and sell it today you would earn a total of 139.00 from holding Macquarie Bank Limited or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Galena Mining vs. Macquarie Bank Limited
Performance |
| Timeline |
| Galena Mining |
| Macquarie Bank |
Galena Mining and Macquarie Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Macquarie Bank
The main advantage of trading using opposite Galena Mining and Macquarie Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Macquarie 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 Macquarie Bank will offset losses from the drop in Macquarie Bank'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 |
| Macquarie Bank vs. NEWMONT PORATION CDI | Macquarie Bank vs. Ssr Mining | Macquarie Bank vs. Ora Banda Mining | Macquarie Bank vs. Black Cat Syndicate |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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