Correlation Between GALENA MINING and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Citic Telecom 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 Citic Telecom 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 Citic Telecom International, you can compare the effects of market volatilities on GALENA MINING and Citic Telecom 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 Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Citic Telecom.
Diversification Opportunities for GALENA MINING and Citic Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Citic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Citic Telecom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Telecom Intern 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 Citic Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Telecom Intern has no effect on the direction of GALENA MINING i.e., GALENA MINING and Citic Telecom go up and down completely randomly.
Pair Corralation between GALENA MINING and Citic Telecom
Assuming the 90 days horizon GALENA MINING is expected to generate 22.6 times less return on investment than Citic Telecom. But when comparing it to its historical volatility, GALENA MINING LTD is 1.12 times less risky than Citic Telecom. It trades about 0.0 of its potential returns per unit of risk. Citic Telecom International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8.74 in Citic Telecom International on August 31, 2024 and sell it today you would earn a total of 17.26 from holding Citic Telecom International or generate 197.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
GALENA MINING LTD vs. Citic Telecom International
Performance |
| Timeline |
| GALENA MINING LTD |
| Citic Telecom Intern |
GALENA MINING and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Citic Telecom
The main advantage of trading using opposite GALENA MINING and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Citic Telecom 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 Citic Telecom will offset losses from the drop in Citic Telecom's long position.| GALENA MINING vs. LION ONE METALS | GALENA MINING vs. Penn National Gaming | GALENA MINING vs. GameStop Corp | GALENA MINING vs. TROPHY GAMES DEV |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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