Correlation Between GALENA MINING and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS, you can compare the effects of market volatilities on GALENA MINING and EAGLE MATERIALS 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 EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and EAGLE MATERIALS.
Diversification Opportunities for GALENA MINING and EAGLE MATERIALS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and EAGLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of GALENA MINING i.e., GALENA MINING and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between GALENA MINING and EAGLE MATERIALS
If you would invest 26,600 in EAGLE MATERIALS on August 27, 2024 and sell it today you would earn a total of 3,200 from holding EAGLE MATERIALS or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GALENA MINING LTD vs. EAGLE MATERIALS
Performance |
| Timeline |
| GALENA MINING LTD |
| EAGLE MATERIALS |
GALENA MINING and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and EAGLE MATERIALS
The main advantage of trading using opposite GALENA MINING and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| GALENA MINING vs. Fidelity National Information | GALENA MINING vs. Cass Information Systems | GALENA MINING vs. Magnachip Semiconductor | GALENA MINING vs. NXP Semiconductors NV |
| EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Microsoft |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |