Correlation Between GALENA MINING and Cars
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Cars 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 Cars 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 Cars Inc, you can compare the effects of market volatilities on GALENA MINING and Cars 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 Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Cars.
Diversification Opportunities for GALENA MINING and Cars
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Cars is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc 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 Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of GALENA MINING i.e., GALENA MINING and Cars go up and down completely randomly.
Pair Corralation between GALENA MINING and Cars
If you would invest 1,620 in Cars Inc on November 8, 2024 and sell it today you would earn a total of 60.00 from holding Cars Inc or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GALENA MINING LTD vs. Cars Inc
Performance |
| Timeline |
| GALENA MINING LTD |
| Cars Inc |
GALENA MINING and Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Cars
The main advantage of trading using opposite GALENA MINING and Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Cars 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 Cars will offset losses from the drop in Cars' long position.| GALENA MINING vs. AEGEAN AIRLINES | GALENA MINING vs. United Airlines Holdings | GALENA MINING vs. SIEM OFFSHORE NEW | GALENA MINING vs. China Eastern Airlines |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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