Correlation Between GALENA MINING and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and FORWARD AIR 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 FORWARD AIR 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 FORWARD AIR P, you can compare the effects of market volatilities on GALENA MINING and FORWARD AIR 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 FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and FORWARD AIR.
Diversification Opportunities for GALENA MINING and FORWARD AIR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and FORWARD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P 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 FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of GALENA MINING i.e., GALENA MINING and FORWARD AIR go up and down completely randomly.
Pair Corralation between GALENA MINING and FORWARD AIR
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 1.44 times more return on investment than FORWARD AIR. However, GALENA MINING is 1.44 times more volatile than FORWARD AIR P. It trades about -0.02 of its potential returns per unit of risk. FORWARD AIR P is currently generating about -0.04 per unit of risk. If you would invest 13.00 in GALENA MINING LTD on November 27, 2024 and sell it today you would lose (9.95) from holding GALENA MINING LTD or give up 76.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GALENA MINING LTD vs. FORWARD AIR P
Performance |
| Timeline |
| GALENA MINING LTD |
| FORWARD AIR P |
GALENA MINING and FORWARD AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and FORWARD AIR
The main advantage of trading using opposite GALENA MINING and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.| GALENA MINING vs. Cars Inc | GALENA MINING vs. ZURICH INSURANCE GROUP | GALENA MINING vs. Geely Automobile Holdings | GALENA MINING vs. Vienna Insurance Group |
| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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