Correlation Between GALENA MINING and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on GALENA MINING and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and GAMESTOP.
Diversification Opportunities for GALENA MINING and GAMESTOP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and GAMESTOP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of GALENA MINING i.e., GALENA MINING and GAMESTOP go up and down completely randomly.
Pair Corralation between GALENA MINING and GAMESTOP
Assuming the 90 days horizon GALENA MINING is expected to generate 3.79 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, GALENA MINING LTD is 1.59 times less risky than GAMESTOP. It trades about 0.03 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,270 in GAMESTOP on September 1, 2024 and sell it today you would earn a total of 1,432 from holding GAMESTOP or generate 112.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
GALENA MINING LTD vs. GAMESTOP
Performance |
| Timeline |
| GALENA MINING LTD |
| GAMESTOP |
GALENA MINING and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and GAMESTOP
The main advantage of trading using opposite GALENA MINING and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Liontown Resources Limited | GALENA MINING vs. American Lithium Corp |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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