Correlation Between GALENA MINING and CAIRN HOMES
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and CAIRN HOMES 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 CAIRN HOMES 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 CAIRN HOMES EO, you can compare the effects of market volatilities on GALENA MINING and CAIRN HOMES 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 CAIRN HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and CAIRN HOMES.
Diversification Opportunities for GALENA MINING and CAIRN HOMES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and CAIRN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and CAIRN HOMES EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIRN HOMES EO 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 CAIRN HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIRN HOMES EO has no effect on the direction of GALENA MINING i.e., GALENA MINING and CAIRN HOMES go up and down completely randomly.
Pair Corralation between GALENA MINING and CAIRN HOMES
If you would invest 3.05 in GALENA MINING LTD on October 17, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
GALENA MINING LTD vs. CAIRN HOMES EO
Performance |
| Timeline |
| GALENA MINING LTD |
| CAIRN HOMES EO |
GALENA MINING and CAIRN HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and CAIRN HOMES
The main advantage of trading using opposite GALENA MINING and CAIRN HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, CAIRN HOMES 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 CAIRN HOMES will offset losses from the drop in CAIRN HOMES's long position.| GALENA MINING vs. Nomad Foods | GALENA MINING vs. MHP Hotel AG | GALENA MINING vs. Wyndham Hotels Resorts | GALENA MINING vs. Lifeway Foods |
| CAIRN HOMES vs. Jupiter Fund Management | CAIRN HOMES vs. GRIFFIN MINING LTD | CAIRN HOMES vs. GALENA MINING LTD | CAIRN HOMES vs. De Grey Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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