Correlation Between GALENA MINING and Cummins
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Cummins 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 Cummins 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 Cummins, you can compare the effects of market volatilities on GALENA MINING and Cummins 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 Cummins. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Cummins.
Diversification Opportunities for GALENA MINING and Cummins
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Cummins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Cummins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cummins 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 Cummins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cummins has no effect on the direction of GALENA MINING i.e., GALENA MINING and Cummins go up and down completely randomly.
Pair Corralation between GALENA MINING and Cummins
If you would invest 34,435 in Cummins on September 15, 2024 and sell it today you would earn a total of 905.00 from holding Cummins or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
GALENA MINING LTD vs. Cummins
Performance |
| Timeline |
| GALENA MINING LTD |
| Cummins |
GALENA MINING and Cummins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Cummins
The main advantage of trading using opposite GALENA MINING and Cummins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Cummins 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 Cummins will offset losses from the drop in Cummins' long position.| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
| Cummins vs. The Hanover Insurance | Cummins vs. GALENA MINING LTD | Cummins vs. United Insurance Holdings | Cummins vs. Japan Post Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |