Correlation Between GALENA MINING and ASX
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and ASX 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 ASX 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 ASX Limited, you can compare the effects of market volatilities on GALENA MINING and ASX 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 ASX. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and ASX.
Diversification Opportunities for GALENA MINING and ASX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and ASX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and ASX Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASX Limited 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 ASX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASX Limited has no effect on the direction of GALENA MINING i.e., GALENA MINING and ASX go up and down completely randomly.
Pair Corralation between GALENA MINING and ASX
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the ASX. In addition to that, GALENA MINING is 4.96 times more volatile than ASX Limited. It trades about -0.02 of its total potential returns per unit of risk. ASX Limited is currently generating about 0.01 per unit of volatility. If you would invest 3,838 in ASX Limited on October 11, 2024 and sell it today you would earn a total of 42.00 from holding ASX Limited or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. ASX Limited
Performance |
| Timeline |
| GALENA MINING LTD |
| ASX Limited |
GALENA MINING and ASX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and ASX
The main advantage of trading using opposite GALENA MINING and ASX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, ASX 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 ASX will offset losses from the drop in ASX's long position.| GALENA MINING vs. WisdomTree Investments | GALENA MINING vs. CHRYSALIS INVESTMENTS LTD | GALENA MINING vs. JLF INVESTMENT | GALENA MINING vs. Keck Seng Investments |
| ASX vs. GREENX METALS LTD | ASX vs. COSTCO WHOLESALE CDR | ASX vs. Hua Hong Semiconductor | ASX vs. GALENA MINING LTD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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