Correlation Between GALENA MINING and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and AM EAGLE 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 AM EAGLE 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 AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on GALENA MINING and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and AM EAGLE.
Diversification Opportunities for GALENA MINING and AM EAGLE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and AFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of GALENA MINING i.e., GALENA MINING and AM EAGLE go up and down completely randomly.
Pair Corralation between GALENA MINING and AM EAGLE
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the AM EAGLE. In addition to that, GALENA MINING is 2.47 times more volatile than AM EAGLE OUTFITTERS. It trades about -0.01 of its total potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about 0.03 per unit of volatility. If you would invest 1,417 in AM EAGLE OUTFITTERS on September 2, 2024 and sell it today you would earn a total of 393.00 from holding AM EAGLE OUTFITTERS or generate 27.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| GALENA MINING LTD |
| AM EAGLE OUTFITTERS |
GALENA MINING and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and AM EAGLE
The main advantage of trading using opposite GALENA MINING and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.The idea behind GALENA MINING LTD and AM EAGLE OUTFITTERS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AM EAGLE vs. SIVERS SEMICONDUCTORS AB | AM EAGLE vs. Darden Restaurants | AM EAGLE vs. Reliance Steel Aluminum | AM EAGLE vs. Q2M Managementberatung AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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