Correlation Between GALENA MINING and KRISPY KREME
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and KRISPY KREME 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 KRISPY KREME 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 KRISPY KREME DL 01, you can compare the effects of market volatilities on GALENA MINING and KRISPY KREME 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 KRISPY KREME. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and KRISPY KREME.
Diversification Opportunities for GALENA MINING and KRISPY KREME
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and KRISPY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and KRISPY KREME DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRISPY KREME DL 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 KRISPY KREME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRISPY KREME DL has no effect on the direction of GALENA MINING i.e., GALENA MINING and KRISPY KREME go up and down completely randomly.
Pair Corralation between GALENA MINING and KRISPY KREME
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the KRISPY KREME. In addition to that, GALENA MINING is 2.38 times more volatile than KRISPY KREME DL 01. It trades about -0.01 of its total potential returns per unit of risk. KRISPY KREME DL 01 is currently generating about -0.01 per unit of volatility. If you would invest 1,367 in KRISPY KREME DL 01 on September 3, 2024 and sell it today you would lose (327.00) from holding KRISPY KREME DL 01 or give up 23.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. KRISPY KREME DL 01
Performance |
| Timeline |
| GALENA MINING LTD |
| KRISPY KREME DL |
GALENA MINING and KRISPY KREME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and KRISPY KREME
The main advantage of trading using opposite GALENA MINING and KRISPY KREME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, KRISPY KREME 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 KRISPY KREME will offset losses from the drop in KRISPY KREME's long position.| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom International |
| KRISPY KREME vs. LIFENET INSURANCE CO | KRISPY KREME vs. CPU SOFTWAREHOUSE | KRISPY KREME vs. UNIVMUSIC GRPADR050 | KRISPY KREME vs. UPDATE SOFTWARE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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