Correlation Between GALENA MINING and BYD ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and BYD ELECTRONIC 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 BYD ELECTRONIC 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 BYD ELECTRONIC, you can compare the effects of market volatilities on GALENA MINING and BYD ELECTRONIC 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 BYD ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and BYD ELECTRONIC.
Diversification Opportunities for GALENA MINING and BYD ELECTRONIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and BYD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and BYD ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD ELECTRONIC 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 BYD ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD ELECTRONIC has no effect on the direction of GALENA MINING i.e., GALENA MINING and BYD ELECTRONIC go up and down completely randomly.
Pair Corralation between GALENA MINING and BYD ELECTRONIC
If you would invest 403.00 in BYD ELECTRONIC on August 28, 2024 and sell it today you would earn a total of 10.00 from holding BYD ELECTRONIC or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GALENA MINING LTD vs. BYD ELECTRONIC
Performance |
| Timeline |
| GALENA MINING LTD |
| BYD ELECTRONIC |
GALENA MINING and BYD ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and BYD ELECTRONIC
The main advantage of trading using opposite GALENA MINING and BYD ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, BYD ELECTRONIC 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 BYD ELECTRONIC will offset losses from the drop in BYD ELECTRONIC's long position.| GALENA MINING vs. Fidelity National Information | GALENA MINING vs. Cass Information Systems | GALENA MINING vs. Magnachip Semiconductor | GALENA MINING vs. NXP Semiconductors NV |
| BYD ELECTRONIC vs. LG Display Co | BYD ELECTRONIC vs. KRISPY KREME DL 01 | BYD ELECTRONIC vs. Jacquet Metal Service | BYD ELECTRONIC vs. Entravision Communications |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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