Correlation Between GALENA MINING and National Storage
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and National Storage 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 National Storage 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 National Storage Affiliates, you can compare the effects of market volatilities on GALENA MINING and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and National Storage.
Diversification Opportunities for GALENA MINING and National Storage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of GALENA MINING i.e., GALENA MINING and National Storage go up and down completely randomly.
Pair Corralation between GALENA MINING and National Storage
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the National Storage. But the stock apears to be less risky and, when comparing its historical volatility, GALENA MINING LTD is 1.01 times less risky than National Storage. The stock trades about -0.01 of its potential returns per unit of risk. The National Storage Affiliates is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,462 in National Storage Affiliates on September 14, 2024 and sell it today you would earn a total of 574.00 from holding National Storage Affiliates or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. National Storage Affiliates
Performance |
| Timeline |
| GALENA MINING LTD |
| National Storage Aff |
GALENA MINING and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and National Storage
The main advantage of trading using opposite GALENA MINING and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
| National Storage vs. Lifeway Foods | National Storage vs. TYSON FOODS A | National Storage vs. SENECA FOODS A | National Storage vs. MCEWEN MINING INC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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