Correlation Between Galantas Gold and Stelmine Canada
Can any of the company-specific risk be diversified away by investing in both Galantas Gold and Stelmine Canada 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 Stelmine Canada 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 Stelmine Canada, you can compare the effects of market volatilities on Galantas Gold and Stelmine Canada 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 Stelmine Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galantas Gold and Stelmine Canada.
Diversification Opportunities for Galantas Gold and Stelmine Canada
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galantas and Stelmine is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Galantas Gold Corp and Stelmine Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stelmine Canada 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 Stelmine Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stelmine Canada has no effect on the direction of Galantas Gold i.e., Galantas Gold and Stelmine Canada go up and down completely randomly.
Pair Corralation between Galantas Gold and Stelmine Canada
If you would invest 2.00 in Stelmine Canada on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Stelmine Canada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galantas Gold Corp vs. Stelmine Canada
Performance |
| Timeline |
| Galantas Gold Corp |
| Stelmine Canada |
Galantas Gold and Stelmine Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galantas Gold and Stelmine Canada
The main advantage of trading using opposite Galantas Gold and Stelmine Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galantas Gold position performs unexpectedly, Stelmine Canada 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 Stelmine Canada will offset losses from the drop in Stelmine Canada'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 |
| Stelmine Canada vs. Amex Exploration | Stelmine Canada vs. Jaxon Mining | Stelmine Canada vs. Jade Leader Corp | Stelmine Canada vs. BMO Aggregate Bond |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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