Correlation Between GALENA MINING and Canadian Natural
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Canadian Natural 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 Canadian Natural 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 Canadian Natural Resources, you can compare the effects of market volatilities on GALENA MINING and Canadian Natural 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 Canadian Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Canadian Natural.
Diversification Opportunities for GALENA MINING and Canadian Natural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Canadian Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Natural Res 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 Canadian Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Natural Res has no effect on the direction of GALENA MINING i.e., GALENA MINING and Canadian Natural go up and down completely randomly.
Pair Corralation between GALENA MINING and Canadian Natural
If you would invest 3.05 in GALENA MINING LTD on November 3, 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 | 95.65% |
| Values | Daily Returns |
GALENA MINING LTD vs. Canadian Natural Resources
Performance |
| Timeline |
| GALENA MINING LTD |
| Canadian Natural Res |
GALENA MINING and Canadian Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Canadian Natural
The main advantage of trading using opposite GALENA MINING and Canadian Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Canadian Natural 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 Canadian Natural will offset losses from the drop in Canadian Natural's long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. Liontown Resources Limited |
| Canadian Natural vs. Sixt Leasing SE | Canadian Natural vs. PT Steel Pipe | Canadian Natural vs. UNITED RENTALS | Canadian Natural vs. FUYO GENERAL LEASE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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