Correlation Between GALENA MINING and Aedas Homes
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Aedas Homes 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 Aedas Homes 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 Aedas Homes SA, you can compare the effects of market volatilities on GALENA MINING and Aedas Homes 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 Aedas Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Aedas Homes.
Diversification Opportunities for GALENA MINING and Aedas Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Aedas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Aedas Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedas Homes SA 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 Aedas Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedas Homes SA has no effect on the direction of GALENA MINING i.e., GALENA MINING and Aedas Homes go up and down completely randomly.
Pair Corralation between GALENA MINING and Aedas Homes
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Aedas Homes. In addition to that, GALENA MINING is 3.68 times more volatile than Aedas Homes SA. It trades about -0.02 of its total potential returns per unit of risk. Aedas Homes SA is currently generating about 0.13 per unit of volatility. If you would invest 1,014 in Aedas Homes SA on November 7, 2024 and sell it today you would earn a total of 1,911 from holding Aedas Homes SA or generate 188.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. Aedas Homes SA
Performance |
| Timeline |
| GALENA MINING LTD |
| Aedas Homes SA |
GALENA MINING and Aedas Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Aedas Homes
The main advantage of trading using opposite GALENA MINING and Aedas Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Aedas Homes 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 Aedas Homes will offset losses from the drop in Aedas Homes' long position.| GALENA MINING vs. PLANT VEDA FOODS | GALENA MINING vs. COFCO Joycome Foods | GALENA MINING vs. Caseys General Stores | GALENA MINING vs. RETAIL FOOD GROUP |
| Aedas Homes vs. Daito Trust Construction | Aedas Homes vs. Titan Machinery | Aedas Homes vs. FIRST SHIP LEASE | Aedas Homes vs. WIMFARM SA EO |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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