Correlation Between GALENA MINING and Iridium Communications
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Iridium Communications 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 Iridium Communications 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 Iridium Communications, you can compare the effects of market volatilities on GALENA MINING and Iridium Communications 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 Iridium Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Iridium Communications.
Diversification Opportunities for GALENA MINING and Iridium Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Iridium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Iridium Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iridium Communications 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 Iridium Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iridium Communications has no effect on the direction of GALENA MINING i.e., GALENA MINING and Iridium Communications go up and down completely randomly.
Pair Corralation between GALENA MINING and Iridium Communications
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 2.73 times more return on investment than Iridium Communications. However, GALENA MINING is 2.73 times more volatile than Iridium Communications. It trades about -0.01 of its potential returns per unit of risk. Iridium Communications is currently generating about -0.04 per unit of risk. If you would invest 12.00 in GALENA MINING LTD on August 24, 2024 and sell it today you would lose (8.95) from holding GALENA MINING LTD or give up 74.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GALENA MINING LTD vs. Iridium Communications
Performance |
| Timeline |
| GALENA MINING LTD |
| Iridium Communications |
GALENA MINING and Iridium Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Iridium Communications
The main advantage of trading using opposite GALENA MINING and Iridium Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Iridium Communications 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 Iridium Communications will offset losses from the drop in Iridium Communications' long position.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
| Iridium Communications vs. Granite Construction | Iridium Communications vs. GALENA MINING LTD | Iridium Communications vs. GRIFFIN MINING LTD | Iridium Communications vs. Harmony Gold Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |