Correlation Between GALENA MINING and Coca Cola
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Coca Cola 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 Coca Cola 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 The Coca Cola, you can compare the effects of market volatilities on GALENA MINING and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Coca Cola.
Diversification Opportunities for GALENA MINING and Coca Cola
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Coca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of GALENA MINING i.e., GALENA MINING and Coca Cola go up and down completely randomly.
Pair Corralation between GALENA MINING and Coca Cola
Assuming the 90 days horizon GALENA MINING is expected to generate 2.06 times less return on investment than Coca Cola. In addition to that, GALENA MINING is 7.72 times more volatile than The Coca Cola. It trades about 0.0 of its total potential returns per unit of risk. The Coca Cola is currently generating about 0.05 per unit of volatility. If you would invest 5,307 in The Coca Cola on August 31, 2024 and sell it today you would earn a total of 842.00 from holding The Coca Cola or generate 15.87% 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. The Coca Cola
Performance |
| Timeline |
| GALENA MINING LTD |
| Coca Cola |
GALENA MINING and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Coca Cola
The main advantage of trading using opposite GALENA MINING and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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