Correlation Between GALENA MINING and New Residential
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and New Residential 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 New Residential 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 New Residential Investment, you can compare the effects of market volatilities on GALENA MINING and New Residential 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 New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and New Residential.
Diversification Opportunities for GALENA MINING and New Residential
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve 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 New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of GALENA MINING i.e., GALENA MINING and New Residential go up and down completely randomly.
Pair Corralation between GALENA MINING and New Residential
If you would invest 973.00 in New Residential Investment on August 25, 2024 and sell it today you would earn a total of 55.00 from holding New Residential Investment or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GALENA MINING LTD vs. New Residential Investment
Performance |
| Timeline |
| GALENA MINING LTD |
| New Residential Inve |
GALENA MINING and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and New Residential
The main advantage of trading using opposite GALENA MINING and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
| New Residential vs. Xtrackers ShortDAX | New Residential vs. Xtrackers LevDAX | New Residential vs. Lyxor 1 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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