Correlation Between GALENA MINING and Strategic Investments
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Strategic Investments 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 Strategic Investments 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 Strategic Investments AS, you can compare the effects of market volatilities on GALENA MINING and Strategic Investments 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 Strategic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Strategic Investments.
Diversification Opportunities for GALENA MINING and Strategic Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Strategic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Strategic Investments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Investments 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 Strategic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Investments has no effect on the direction of GALENA MINING i.e., GALENA MINING and Strategic Investments go up and down completely randomly.
Pair Corralation between GALENA MINING and Strategic Investments
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Strategic Investments. In addition to that, GALENA MINING is 1.29 times more volatile than Strategic Investments AS. It trades about -0.01 of its total potential returns per unit of risk. Strategic Investments AS is currently generating about 0.04 per unit of volatility. If you would invest 8.80 in Strategic Investments AS on September 3, 2024 and sell it today you would earn a total of 5.20 from holding Strategic Investments AS or generate 59.09% 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. Strategic Investments AS
Performance |
| Timeline |
| GALENA MINING LTD |
| Strategic Investments |
GALENA MINING and Strategic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Strategic Investments
The main advantage of trading using opposite GALENA MINING and Strategic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Strategic Investments 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 Strategic Investments will offset losses from the drop in Strategic Investments' long position.| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom International |
| Strategic Investments vs. Japan Tobacco | Strategic Investments vs. MAROC TELECOM | Strategic Investments vs. REGAL HOTEL INTL | Strategic Investments vs. Host Hotels Resorts |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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