Correlation Between GALENA MINING and GBS Software
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and GBS Software 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 GBS Software 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 GBS Software AG, you can compare the effects of market volatilities on GALENA MINING and GBS Software 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 GBS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and GBS Software.
Diversification Opportunities for GALENA MINING and GBS Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and GBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and GBS Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Software AG 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 GBS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Software AG has no effect on the direction of GALENA MINING i.e., GALENA MINING and GBS Software go up and down completely randomly.
Pair Corralation between GALENA MINING and GBS Software
Assuming the 90 days horizon GALENA MINING is expected to generate 1.36 times less return on investment than GBS Software. In addition to that, GALENA MINING is 2.33 times more volatile than GBS Software AG. It trades about 0.01 of its total potential returns per unit of risk. GBS Software AG is currently generating about 0.04 per unit of volatility. If you would invest 240.00 in GBS Software AG on October 16, 2024 and sell it today you would earn a total of 50.00 from holding GBS Software AG or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
GALENA MINING LTD vs. GBS Software AG
Performance |
| Timeline |
| GALENA MINING LTD |
| GBS Software AG |
GALENA MINING and GBS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and GBS Software
The main advantage of trading using opposite GALENA MINING and GBS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, GBS Software 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 GBS Software will offset losses from the drop in GBS Software's long position.| GALENA MINING vs. LANDSEA GREEN MANAGEMENT | GALENA MINING vs. Canon Marketing Japan | GALENA MINING vs. Waste Management | GALENA MINING vs. Indutrade AB |
| GBS Software vs. Virtus Investment Partners | GBS Software vs. New Residential Investment | GBS Software vs. Infrastrutture Wireless Italiane | GBS Software vs. VIRGIN WINES UK |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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