Correlation Between GALENA MINING and Big 5
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Big 5 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 Big 5 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 Big 5 Sporting, you can compare the effects of market volatilities on GALENA MINING and Big 5 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 Big 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Big 5.
Diversification Opportunities for GALENA MINING and Big 5
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Big is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Big 5 Sporting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big 5 Sporting 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 Big 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big 5 Sporting has no effect on the direction of GALENA MINING i.e., GALENA MINING and Big 5 go up and down completely randomly.
Pair Corralation between GALENA MINING and Big 5
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 0.37 times more return on investment than Big 5. However, GALENA MINING LTD is 2.69 times less risky than Big 5. It trades about -0.03 of its potential returns per unit of risk. Big 5 Sporting is currently generating about -0.08 per unit of risk. If you would invest 3.55 in GALENA MINING LTD on September 12, 2024 and sell it today you would lose (0.50) from holding GALENA MINING LTD or give up 14.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. Big 5 Sporting
Performance |
| Timeline |
| GALENA MINING LTD |
| Big 5 Sporting |
GALENA MINING and Big 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Big 5
The main advantage of trading using opposite GALENA MINING and Big 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Big 5 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 Big 5 will offset losses from the drop in Big 5's long position.| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
| Big 5 vs. Superior Plus Corp | Big 5 vs. SIVERS SEMICONDUCTORS AB | Big 5 vs. NorAm Drilling AS | Big 5 vs. Norsk Hydro ASA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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