Correlation Between GALENA MINING and Caseys General
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on GALENA MINING and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Caseys General.
Diversification Opportunities for GALENA MINING and Caseys General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Caseys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of GALENA MINING i.e., GALENA MINING and Caseys General go up and down completely randomly.
Pair Corralation between GALENA MINING and Caseys General
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Caseys General. In addition to that, GALENA MINING is 4.14 times more volatile than Caseys General Stores. It trades about -0.01 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.08 per unit of volatility. If you would invest 23,093 in Caseys General Stores on August 29, 2024 and sell it today you would earn a total of 17,507 from holding Caseys General Stores or generate 75.81% 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. Caseys General Stores
Performance |
| Timeline |
| GALENA MINING LTD |
| Caseys General Stores |
GALENA MINING and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Caseys General
The main advantage of trading using opposite GALENA MINING and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| GALENA MINING vs. Anglo American plc | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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