Correlation Between GALENA MINING and Bank of Montreal
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Bank of Montreal 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 Bank of Montreal 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 Bank of Montreal, you can compare the effects of market volatilities on GALENA MINING and Bank of Montreal 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 Bank of Montreal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Bank of Montreal.
Diversification Opportunities for GALENA MINING and Bank of Montreal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Bank of Montreal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Montreal 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 Bank of Montreal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Montreal has no effect on the direction of GALENA MINING i.e., GALENA MINING and Bank of Montreal go up and down completely randomly.
Pair Corralation between GALENA MINING and Bank of Montreal
If you would invest 8,421 in Bank of Montreal on August 28, 2024 and sell it today you would earn a total of 615.00 from holding Bank of Montreal or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GALENA MINING LTD vs. Bank of Montreal
Performance |
| Timeline |
| GALENA MINING LTD |
| Bank of Montreal |
GALENA MINING and Bank of Montreal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Bank of Montreal
The main advantage of trading using opposite GALENA MINING and Bank of Montreal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Bank of Montreal 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 Bank of Montreal will offset losses from the drop in Bank of Montreal's long position.| GALENA MINING vs. Fidelity National Information | GALENA MINING vs. Cass Information Systems | GALENA MINING vs. Magnachip Semiconductor | GALENA MINING vs. NXP Semiconductors NV |
| Bank of Montreal vs. MCEWEN MINING INC | Bank of Montreal vs. GOLD ROAD RES | Bank of Montreal vs. GALENA MINING LTD | Bank of Montreal vs. Perseus Mining Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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