Correlation Between GALENA MINING and Axonics
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Axonics 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 Axonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GALENA MINING LTD and Axonics, you can compare the effects of market volatilities on GALENA MINING and Axonics 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 Axonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Axonics.
Diversification Opportunities for GALENA MINING and Axonics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Axonics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Axonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axonics 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 LTD are associated (or correlated) with Axonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axonics has no effect on the direction of GALENA MINING i.e., GALENA MINING and Axonics go up and down completely randomly.
Pair Corralation between GALENA MINING and Axonics
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Axonics. In addition to that, GALENA MINING is 2.58 times more volatile than Axonics. It trades about -0.01 of its total potential returns per unit of risk. Axonics is currently generating about 0.02 per unit of volatility. If you would invest 6,050 in Axonics on September 2, 2024 and sell it today you would earn a total of 300.00 from holding Axonics or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
GALENA MINING LTD vs. Axonics
Performance |
| Timeline |
| GALENA MINING LTD |
| Axonics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GALENA MINING and Axonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Axonics
The main advantage of trading using opposite GALENA MINING and Axonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Axonics 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 Axonics will offset losses from the drop in Axonics' long position.The idea behind GALENA MINING LTD and Axonics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Axonics vs. Canon Marketing Japan | Axonics vs. RYU Apparel | Axonics vs. URBAN OUTFITTERS | Axonics vs. Liberty Broadband |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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