Correlation Between GALENA MINING and Aluminum
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Aluminum 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 Aluminum 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 Aluminum of, you can compare the effects of market volatilities on GALENA MINING and Aluminum 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 Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Aluminum.
Diversification Opportunities for GALENA MINING and Aluminum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Aluminum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum 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 Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum has no effect on the direction of GALENA MINING i.e., GALENA MINING and Aluminum go up and down completely randomly.
Pair Corralation between GALENA MINING and Aluminum
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Aluminum. In addition to that, GALENA MINING is 1.93 times more volatile than Aluminum of. It trades about -0.02 of its total potential returns per unit of risk. Aluminum of is currently generating about 0.06 per unit of volatility. If you would invest 31.00 in Aluminum of on October 27, 2024 and sell it today you would earn a total of 32.00 from holding Aluminum of or generate 103.23% 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. Aluminum of
Performance |
| Timeline |
| GALENA MINING LTD |
| Aluminum |
GALENA MINING and Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Aluminum
The main advantage of trading using opposite GALENA MINING and Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Aluminum 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 Aluminum will offset losses from the drop in Aluminum's long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA |
| Aluminum vs. Mitsubishi Materials | Aluminum vs. Materialise NV | Aluminum vs. MHP Hotel AG | Aluminum vs. Sumitomo Rubber Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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