Correlation Between GALENA MINING and CSX
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on GALENA MINING and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and CSX.
Diversification Opportunities for GALENA MINING and CSX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and CSX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of GALENA MINING i.e., GALENA MINING and CSX go up and down completely randomly.
Pair Corralation between GALENA MINING and CSX
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the CSX. In addition to that, GALENA MINING is 4.9 times more volatile than CSX Corporation. It trades about -0.02 of its total potential returns per unit of risk. CSX Corporation is currently generating about 0.03 per unit of volatility. If you would invest 2,833 in CSX Corporation on September 14, 2024 and sell it today you would earn a total of 384.00 from holding CSX Corporation or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. CSX Corp.
Performance |
| Timeline |
| GALENA MINING LTD |
| CSX Corporation |
GALENA MINING and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and CSX
The main advantage of trading using opposite GALENA MINING and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's 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 |
| CSX vs. Hitachi Construction Machinery | CSX vs. GALENA MINING LTD | CSX vs. MCEWEN MINING INC | CSX vs. Federal Agricultural Mortgage |
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..
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