Correlation Between Galena Mining and Westpac Banking
Can any of the company-specific risk be diversified away by investing in both Galena Mining and Westpac Banking 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 Westpac Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galena Mining and Westpac Banking, you can compare the effects of market volatilities on Galena Mining and Westpac Banking 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 Westpac Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Westpac Banking.
Diversification Opportunities for Galena Mining and Westpac Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galena and Westpac is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and Westpac Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westpac Banking 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 Westpac Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westpac Banking has no effect on the direction of Galena Mining i.e., Galena Mining and Westpac Banking go up and down completely randomly.
Pair Corralation between Galena Mining and Westpac Banking
If you would invest 10,409 in Westpac Banking on September 20, 2024 and sell it today you would earn a total of 78.00 from holding Westpac Banking or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galena Mining vs. Westpac Banking
Performance |
| Timeline |
| Galena Mining |
| Westpac Banking |
Galena Mining and Westpac Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galena Mining and Westpac Banking
The main advantage of trading using opposite Galena Mining and Westpac Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, Westpac Banking 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 Westpac Banking will offset losses from the drop in Westpac Banking's long position.| Galena Mining vs. Autosports Group | Galena Mining vs. Queste Communications | Galena Mining vs. Aurelia Metals | Galena Mining vs. Homeco Daily Needs |
| Westpac Banking vs. Westpac Banking | Westpac Banking vs. De Grey Mining | Westpac Banking vs. Pointsbet Holdings | Westpac Banking vs. Indiana Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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