Correlation Between GALENA MINING and Hitachi
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Hitachi 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 Hitachi 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 Hitachi, you can compare the effects of market volatilities on GALENA MINING and Hitachi 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 Hitachi. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Hitachi.
Diversification Opportunities for GALENA MINING and Hitachi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Hitachi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Hitachi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitachi 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 Hitachi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitachi has no effect on the direction of GALENA MINING i.e., GALENA MINING and Hitachi go up and down completely randomly.
Pair Corralation between GALENA MINING and Hitachi
If you would invest 2,247 in Hitachi on September 5, 2024 and sell it today you would earn a total of 293.00 from holding Hitachi or generate 13.04% 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. Hitachi
Performance |
| Timeline |
| GALENA MINING LTD |
| Hitachi |
GALENA MINING and Hitachi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Hitachi
The main advantage of trading using opposite GALENA MINING and Hitachi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Hitachi 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 Hitachi will offset losses from the drop in Hitachi's long position.The idea behind GALENA MINING LTD and Hitachi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hitachi vs. GALENA MINING LTD | Hitachi vs. Caltagirone SpA | Hitachi vs. ITALIAN WINE BRANDS | Hitachi vs. Nippon Steel |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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