Correlation Between GALENA MINING and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and FAST RETAIL 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 FAST RETAIL 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 FAST RETAIL ADR, you can compare the effects of market volatilities on GALENA MINING and FAST RETAIL 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 FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and FAST RETAIL.
Diversification Opportunities for GALENA MINING and FAST RETAIL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and FAST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR 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 FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of GALENA MINING i.e., GALENA MINING and FAST RETAIL go up and down completely randomly.
Pair Corralation between GALENA MINING and FAST RETAIL
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the FAST RETAIL. In addition to that, GALENA MINING is 3.38 times more volatile than FAST RETAIL ADR. It trades about -0.02 of its total potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.07 per unit of volatility. If you would invest 1,846 in FAST RETAIL ADR on October 1, 2024 and sell it today you would earn a total of 1,414 from holding FAST RETAIL ADR or generate 76.6% 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. FAST RETAIL ADR
Performance |
| Timeline |
| GALENA MINING LTD |
| FAST RETAIL ADR |
GALENA MINING and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and FAST RETAIL
The main advantage of trading using opposite GALENA MINING and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| GALENA MINING vs. Anglo American plc | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. STRAITS TRADG SD | GALENA MINING vs. American Lithium Corp |
| FAST RETAIL vs. PLAYTIKA HOLDING DL 01 | FAST RETAIL vs. GREENX METALS LTD | FAST RETAIL vs. JD SPORTS FASH | FAST RETAIL vs. Ubisoft Entertainment SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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