Correlation Between GALENA MINING and CPU SOFTWAREHOUSE
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE, you can compare the effects of market volatilities on GALENA MINING and CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and CPU SOFTWAREHOUSE.
Diversification Opportunities for GALENA MINING and CPU SOFTWAREHOUSE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and CPU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and CPU SOFTWAREHOUSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPU SOFTWAREHOUSE has no effect on the direction of GALENA MINING i.e., GALENA MINING and CPU SOFTWAREHOUSE go up and down completely randomly.
Pair Corralation between GALENA MINING and CPU SOFTWAREHOUSE
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 0.26 times more return on investment than CPU SOFTWAREHOUSE. However, GALENA MINING LTD is 3.85 times less risky than CPU SOFTWAREHOUSE. It trades about 0.05 of its potential returns per unit of risk. CPU SOFTWAREHOUSE is currently generating about -0.03 per unit of risk. If you would invest 2.70 in GALENA MINING LTD on September 20, 2024 and sell it today you would earn a total of 0.35 from holding GALENA MINING LTD or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. CPU SOFTWAREHOUSE
Performance |
| Timeline |
| GALENA MINING LTD |
| CPU SOFTWAREHOUSE |
GALENA MINING and CPU SOFTWAREHOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and CPU SOFTWAREHOUSE
The main advantage of trading using opposite GALENA MINING and CPU SOFTWAREHOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE will offset losses from the drop in CPU SOFTWAREHOUSE's long position.| GALENA MINING vs. TT Electronics PLC | GALENA MINING vs. MAVEN WIRELESS SWEDEN | GALENA MINING vs. SCOTT TECHNOLOGY | GALENA MINING vs. METHODE ELECTRONICS |
| CPU SOFTWAREHOUSE vs. Lion One Metals | CPU SOFTWAREHOUSE vs. GALENA MINING LTD | CPU SOFTWAREHOUSE vs. Seven West Media | CPU SOFTWAREHOUSE vs. CeoTronics AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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