Correlation Between GALENA MINING and Home Depot
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Home Depot 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 Home Depot 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 The Home Depot, you can compare the effects of market volatilities on GALENA MINING and Home Depot 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 Home Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Home Depot.
Diversification Opportunities for GALENA MINING and Home Depot
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and The Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot 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 Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of GALENA MINING i.e., GALENA MINING and Home Depot go up and down completely randomly.
Pair Corralation between GALENA MINING and Home Depot
If you would invest 37,000 in The Home Depot on August 25, 2024 and sell it today you would earn a total of 3,075 from holding The Home Depot or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
GALENA MINING LTD vs. The Home Depot
Performance |
| Timeline |
| GALENA MINING LTD |
| Home Depot |
GALENA MINING and Home Depot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Home Depot
The main advantage of trading using opposite GALENA MINING and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Home Depot 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 Home Depot will offset losses from the drop in Home Depot'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 |
| Home Depot vs. LESLIES INC DL | Home Depot vs. WICKES GROUP PLC | Home Depot vs. Superior Plus Corp | Home Depot vs. NMI Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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