Correlation Between GALENA MINING and AECOM TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY, you can compare the effects of market volatilities on GALENA MINING and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and AECOM TECHNOLOGY.
Diversification Opportunities for GALENA MINING and AECOM TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and AECOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and AECOM TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM TECHNOLOGY has no effect on the direction of GALENA MINING i.e., GALENA MINING and AECOM TECHNOLOGY go up and down completely randomly.
Pair Corralation between GALENA MINING and AECOM TECHNOLOGY
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the AECOM TECHNOLOGY. In addition to that, GALENA MINING is 4.83 times more volatile than AECOM TECHNOLOGY. It trades about -0.02 of its total potential returns per unit of risk. AECOM TECHNOLOGY is currently generating about 0.06 per unit of volatility. If you would invest 7,617 in AECOM TECHNOLOGY on September 3, 2024 and sell it today you would earn a total of 3,383 from holding AECOM TECHNOLOGY or generate 44.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
GALENA MINING LTD vs. AECOM TECHNOLOGY
Performance |
| Timeline |
| GALENA MINING LTD |
| AECOM TECHNOLOGY |
GALENA MINING and AECOM TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and AECOM TECHNOLOGY
The main advantage of trading using opposite GALENA MINING and AECOM TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, AECOM TECHNOLOGY 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 AECOM TECHNOLOGY will offset losses from the drop in AECOM TECHNOLOGY's long position.| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom International |
| AECOM TECHNOLOGY vs. ON SEMICONDUCTOR | AECOM TECHNOLOGY vs. CHINA TONTINE WINES | AECOM TECHNOLOGY vs. COSTCO WHOLESALE CDR | AECOM TECHNOLOGY vs. BJs Wholesale Club |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |