Correlation Between GALENA MINING and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and MACOM Technology 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 MACOM Technology 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 MACOM Technology Solutions, you can compare the effects of market volatilities on GALENA MINING and MACOM Technology 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 MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and MACOM Technology.
Diversification Opportunities for GALENA MINING and MACOM Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and MACOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol 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 MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of GALENA MINING i.e., GALENA MINING and MACOM Technology go up and down completely randomly.
Pair Corralation between GALENA MINING and MACOM Technology
If you would invest 8,700 in MACOM Technology Solutions on November 3, 2024 and sell it today you would earn a total of 4,000 from holding MACOM Technology Solutions or generate 45.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
GALENA MINING LTD vs. MACOM Technology Solutions
Performance |
| Timeline |
| GALENA MINING LTD |
| MACOM Technology Sol |
GALENA MINING and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and MACOM Technology
The main advantage of trading using opposite GALENA MINING and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, MACOM Technology 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 MACOM Technology will offset losses from the drop in MACOM Technology's long position.| GALENA MINING vs. Virtu Financial | GALENA MINING vs. Suntory Beverage Food | GALENA MINING vs. SAN MIGUEL BREWERY | GALENA MINING vs. Chiba Bank |
| MACOM Technology vs. InPlay Oil Corp | MACOM Technology vs. Playtech plc | MACOM Technology vs. PLAYWAY SA ZY 10 | MACOM Technology vs. Firan Technology Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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