Correlation Between GALENA MINING and Park Hotels
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Park Hotels 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 Park Hotels 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 Park Hotels Resorts, you can compare the effects of market volatilities on GALENA MINING and Park Hotels 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 Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Park Hotels.
Diversification Opportunities for GALENA MINING and Park Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Park is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts 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 Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of GALENA MINING i.e., GALENA MINING and Park Hotels go up and down completely randomly.
Pair Corralation between GALENA MINING and Park Hotels
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Park Hotels. In addition to that, GALENA MINING is 2.92 times more volatile than Park Hotels Resorts. It trades about -0.02 of its total potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.03 per unit of volatility. If you would invest 1,139 in Park Hotels Resorts on September 26, 2024 and sell it today you would earn a total of 271.00 from holding Park Hotels Resorts or generate 23.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GALENA MINING LTD vs. Park Hotels Resorts
Performance |
| Timeline |
| GALENA MINING LTD |
| Park Hotels Resorts |
GALENA MINING and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Park Hotels
The main advantage of trading using opposite GALENA MINING and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Park Hotels 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 Park Hotels will offset losses from the drop in Park Hotels' long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Liontown Resources Limited | GALENA MINING vs. NEXA RESOURCES SA |
| Park Hotels vs. Tyson Foods | Park Hotels vs. Zijin Mining Group | Park Hotels vs. DISTRICT METALS | Park Hotels vs. GALENA MINING LTD |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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