Correlation Between GALENA MINING and Albemarle
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Albemarle 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 Albemarle 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 Albemarle, you can compare the effects of market volatilities on GALENA MINING and Albemarle 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 Albemarle. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Albemarle.
Diversification Opportunities for GALENA MINING and Albemarle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Albemarle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Albemarle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albemarle 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 Albemarle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albemarle has no effect on the direction of GALENA MINING i.e., GALENA MINING and Albemarle go up and down completely randomly.
Pair Corralation between GALENA MINING and Albemarle
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 1.9 times more return on investment than Albemarle. However, GALENA MINING is 1.9 times more volatile than Albemarle. It trades about -0.02 of its potential returns per unit of risk. Albemarle is currently generating about -0.04 per unit of risk. If you would invest 17.00 in GALENA MINING LTD on October 13, 2024 and sell it today you would lose (13.95) from holding GALENA MINING LTD or give up 82.06% 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. Albemarle
Performance |
| Timeline |
| GALENA MINING LTD |
| Albemarle |
GALENA MINING and Albemarle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Albemarle
The main advantage of trading using opposite GALENA MINING and Albemarle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Albemarle 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 Albemarle will offset losses from the drop in Albemarle's long position.| GALENA MINING vs. CAIRN HOMES EO | GALENA MINING vs. Addus HomeCare | GALENA MINING vs. YATRA ONLINE DL 0001 | GALENA MINING vs. Neinor Homes SA |
| Albemarle vs. REVO INSURANCE SPA | Albemarle vs. GALENA MINING LTD | Albemarle vs. HANOVER INSURANCE | Albemarle vs. Zurich Insurance Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |