Correlation Between Galantas Gold and Globex Mining
Can any of the company-specific risk be diversified away by investing in both Galantas Gold and Globex Mining 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 Galantas Gold and Globex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galantas Gold Corp and Globex Mining Enterprises, you can compare the effects of market volatilities on Galantas Gold and Globex Mining 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 Galantas Gold with a short position of Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galantas Gold and Globex Mining.
Diversification Opportunities for Galantas Gold and Globex Mining
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Galantas and Globex is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Galantas Gold Corp and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises and Galantas Gold 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 Galantas Gold Corp are associated (or correlated) with Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of Galantas Gold i.e., Galantas Gold and Globex Mining go up and down completely randomly.
Pair Corralation between Galantas Gold and Globex Mining
Assuming the 90 days horizon Galantas Gold Corp is expected to under-perform the Globex Mining. In addition to that, Galantas Gold is 2.47 times more volatile than Globex Mining Enterprises. It trades about -0.26 of its total potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.07 per unit of volatility. If you would invest 102.00 in Globex Mining Enterprises on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Globex Mining Enterprises or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galantas Gold Corp vs. Globex Mining Enterprises
Performance |
| Timeline |
| Galantas Gold Corp |
| Globex Mining Enterprises |
Galantas Gold and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galantas Gold and Globex Mining
The main advantage of trading using opposite Galantas Gold and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galantas Gold position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| Galantas Gold vs. Grande Portage Resources | Galantas Gold vs. Stelmine Canada | Galantas Gold vs. Endurance Gold Corp | Galantas Gold vs. Dynasty Gold Corp |
| Globex Mining vs. Foraco International SA | Globex Mining vs. Geodrill Limited | Globex Mining vs. Major Drilling Group | Globex Mining vs. Bri Chem Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |