Correlation Between GALENA MINING and Western Copper
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Western Copper 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 Western Copper 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 Western Copper and, you can compare the effects of market volatilities on GALENA MINING and Western Copper 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 Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Western Copper.
Diversification Opportunities for GALENA MINING and Western Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper 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 Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of GALENA MINING i.e., GALENA MINING and Western Copper go up and down completely randomly.
Pair Corralation between GALENA MINING and Western Copper
If you would invest 3.05 in GALENA MINING LTD on October 19, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
GALENA MINING LTD vs. Western Copper and
Performance |
| Timeline |
| GALENA MINING LTD |
| Western Copper |
GALENA MINING and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Western Copper
The main advantage of trading using opposite GALENA MINING and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.| GALENA MINING vs. Samsung Electronics Co | GALENA MINING vs. Delta Electronics Public | GALENA MINING vs. LPKF Laser Electronics | GALENA MINING vs. Apollo Investment Corp |
| Western Copper vs. X FAB Silicon Foundries | Western Copper vs. SILICON LABORATOR | Western Copper vs. TRI CHEMICAL LABORATINC | Western Copper vs. Siamgas And Petrochemicals |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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