Correlation Between GALENA MINING and Granite Construction
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Granite Construction 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 Granite Construction 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 Granite Construction, you can compare the effects of market volatilities on GALENA MINING and Granite Construction 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 Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Granite Construction.
Diversification Opportunities for GALENA MINING and Granite Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Granite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction 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 Granite Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Construction has no effect on the direction of GALENA MINING i.e., GALENA MINING and Granite Construction go up and down completely randomly.
Pair Corralation between GALENA MINING and Granite Construction
If you would invest 7,650 in Granite Construction on August 24, 2024 and sell it today you would earn a total of 1,550 from holding Granite Construction or generate 20.26% 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. Granite Construction
Performance |
| Timeline |
| GALENA MINING LTD |
| Granite Construction |
GALENA MINING and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Granite Construction
The main advantage of trading using opposite GALENA MINING and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Granite Construction 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 Granite Construction will offset losses from the drop in Granite Construction's long position.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
| Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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