Correlation Between GALENA MINING and Japan Asia

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Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Japan Asia 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 Japan Asia 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 Japan Asia Investment, you can compare the effects of market volatilities on GALENA MINING and Japan Asia 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 Japan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Japan Asia.

Diversification Opportunities for GALENA MINING and Japan Asia

GALENAJapanDiversified AwayGALENAJapanDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GALENA and Japan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Japan Asia Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Asia Investment 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 Japan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Asia Investment has no effect on the direction of GALENA MINING i.e., GALENA MINING and Japan Asia go up and down completely randomly.

Pair Corralation between GALENA MINING and Japan Asia

If you would invest  138.00  in Japan Asia Investment on November 21, 2024 and sell it today you would lose (9.00) from holding Japan Asia Investment or give up 6.52% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.56%
ValuesDaily Returns

GALENA MINING LTD  vs.  Japan Asia Investment

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -8-6-4-20
JavaScript chart by amCharts 3.21.15GM6 JAN
       Timeline  
GALENA MINING LTD 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days GALENA MINING LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GALENA MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.03050.0310.0315
Japan Asia Investment 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Japan Asia Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Japan Asia is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.221.241.261.281.31.321.34

GALENA MINING and Japan Asia Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15GM6 JAN
       Returns  

Pair Trading with GALENA MINING and Japan Asia

The main advantage of trading using opposite GALENA MINING and Japan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Japan Asia 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 Japan Asia will offset losses from the drop in Japan Asia's long position.
The idea behind GALENA MINING LTD and Japan Asia Investment 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.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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