Correlation Between GALENA MINING and JERICHO OIL
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and JERICHO OIL 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 JERICHO OIL 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 JERICHO OIL, you can compare the effects of market volatilities on GALENA MINING and JERICHO OIL 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 JERICHO OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and JERICHO OIL.
Diversification Opportunities for GALENA MINING and JERICHO OIL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and JERICHO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and JERICHO OIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JERICHO OIL 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 JERICHO OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JERICHO OIL has no effect on the direction of GALENA MINING i.e., GALENA MINING and JERICHO OIL go up and down completely randomly.
Pair Corralation between GALENA MINING and JERICHO OIL
Assuming the 90 days horizon GALENA MINING is expected to generate 3.5 times less return on investment than JERICHO OIL. But when comparing it to its historical volatility, GALENA MINING LTD is 1.13 times less risky than JERICHO OIL. It trades about 0.0 of its potential returns per unit of risk. JERICHO OIL is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 18.00 in JERICHO OIL on September 2, 2024 and sell it today you would lose (10.05) from holding JERICHO OIL or give up 55.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
GALENA MINING LTD vs. JERICHO OIL
Performance |
| Timeline |
| GALENA MINING LTD |
| JERICHO OIL |
GALENA MINING and JERICHO OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and JERICHO OIL
The main advantage of trading using opposite GALENA MINING and JERICHO OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, JERICHO OIL 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 JERICHO OIL will offset losses from the drop in JERICHO OIL's long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Liontown Resources Limited | GALENA MINING vs. American Lithium Corp |
| JERICHO OIL vs. NetSol Technologies | JERICHO OIL vs. Amkor Technology | JERICHO OIL vs. SMA Solar Technology | JERICHO OIL vs. Micron Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |