Correlation Between Galena Mining and Oneview Healthcare
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Oneview Healthcare 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 Oneview Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Oneview Healthcare PLC, you can compare the effects of market volatilities on Galena Mining and Oneview Healthcare 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 Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Oneview Healthcare.
Diversification Opportunities for Galena Mining and Oneview Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Oneview is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC 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 Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of Galena Mining i.e., Galena Mining and Oneview Healthcare go up and down completely randomly.
Pair Corralation between Galena Mining and Oneview Healthcare
Assuming the 90 days trading horizon Galena Mining is expected to under-perform the Oneview Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Galena Mining is 1.22 times less risky than Oneview Healthcare. The stock trades about -0.03 of its potential returns per unit of risk. The Oneview Healthcare PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Oneview Healthcare PLC on October 30, 2024 and sell it today you would earn a total of 12.00 from holding Oneview Healthcare PLC or generate 70.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galena Mining vs. Oneview Healthcare PLC
Performance |
| Timeline |
| Galena Mining |
| Oneview Healthcare PLC |
Galena Mining and Oneview Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Oneview Healthcare
The main advantage of trading using opposite Galena Mining and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Oneview Healthcare 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare's long position.| Galena Mining vs. Perseus Mining | Galena Mining vs. Metro Mining | Galena Mining vs. Ora Banda Mining | Galena Mining vs. Group 6 Metals |
| Oneview Healthcare vs. Infomedia | Oneview Healthcare vs. Southern Cross Media | Oneview Healthcare vs. Dalaroo Metals | Oneview Healthcare vs. Sky 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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