Correlation Between GALENA MINING and DATAGROUP
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and DATAGROUP 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 DATAGROUP 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 DATAGROUP SE, you can compare the effects of market volatilities on GALENA MINING and DATAGROUP 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 DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and DATAGROUP.
Diversification Opportunities for GALENA MINING and DATAGROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and DATAGROUP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE 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 DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of GALENA MINING i.e., GALENA MINING and DATAGROUP go up and down completely randomly.
Pair Corralation between GALENA MINING and DATAGROUP
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 0.77 times more return on investment than DATAGROUP. However, GALENA MINING LTD is 1.3 times less risky than DATAGROUP. It trades about -0.01 of its potential returns per unit of risk. DATAGROUP SE is currently generating about -0.02 per unit of risk. If you would invest 3.25 in GALENA MINING LTD on September 14, 2024 and sell it today you would lose (0.20) from holding GALENA MINING LTD or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. DATAGROUP SE
Performance |
| Timeline |
| GALENA MINING LTD |
| DATAGROUP SE |
GALENA MINING and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and DATAGROUP
The main advantage of trading using opposite GALENA MINING and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP'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 |
| DATAGROUP vs. Compagnie Plastic Omnium | DATAGROUP vs. VIAPLAY GROUP AB | DATAGROUP vs. TRAVEL LEISURE DL 01 | DATAGROUP vs. PLAY2CHILL SA ZY |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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