Correlation Between GALENA MINING and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Eidesvik Offshore 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 Eidesvik Offshore 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 Eidesvik Offshore ASA, you can compare the effects of market volatilities on GALENA MINING and Eidesvik Offshore 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 Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Eidesvik Offshore.
Diversification Opportunities for GALENA MINING and Eidesvik Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Eidesvik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of GALENA MINING i.e., GALENA MINING and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between GALENA MINING and Eidesvik Offshore
If you would invest 3.05 in GALENA MINING LTD on November 3, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GALENA MINING LTD vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| GALENA MINING LTD |
| Eidesvik Offshore ASA |
GALENA MINING and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Eidesvik Offshore
The main advantage of trading using opposite GALENA MINING and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore's long position.| GALENA MINING vs. Virtu Financial | GALENA MINING vs. Suntory Beverage Food | GALENA MINING vs. SAN MIGUEL BREWERY | GALENA MINING vs. Chiba Bank |
| Eidesvik Offshore vs. Altair Engineering | Eidesvik Offshore vs. CONTAGIOUS GAMING INC | Eidesvik Offshore vs. RYANAIR HLDGS ADR | Eidesvik Offshore vs. Boyd Gaming |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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