Correlation Between GALENA MINING and KENNAMETAL INC
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and KENNAMETAL INC 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 KENNAMETAL INC 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 KENNAMETAL INC, you can compare the effects of market volatilities on GALENA MINING and KENNAMETAL INC 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 KENNAMETAL INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and KENNAMETAL INC.
Diversification Opportunities for GALENA MINING and KENNAMETAL INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and KENNAMETAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and KENNAMETAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENNAMETAL INC 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 KENNAMETAL INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENNAMETAL INC has no effect on the direction of GALENA MINING i.e., GALENA MINING and KENNAMETAL INC go up and down completely randomly.
Pair Corralation between GALENA MINING and KENNAMETAL INC
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the KENNAMETAL INC. In addition to that, GALENA MINING is 1.0 times more volatile than KENNAMETAL INC. It trades about -0.05 of its total potential returns per unit of risk. KENNAMETAL INC is currently generating about 0.06 per unit of volatility. If you would invest 2,030 in KENNAMETAL INC on August 24, 2024 and sell it today you would earn a total of 630.00 from holding KENNAMETAL INC or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
GALENA MINING LTD vs. KENNAMETAL INC
Performance |
| Timeline |
| GALENA MINING LTD |
| KENNAMETAL INC |
GALENA MINING and KENNAMETAL INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and KENNAMETAL INC
The main advantage of trading using opposite GALENA MINING and KENNAMETAL INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, KENNAMETAL INC 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 KENNAMETAL INC will offset losses from the drop in KENNAMETAL INC's long position.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
| KENNAMETAL INC vs. Hollywood Bowl Group | KENNAMETAL INC vs. TOWNSQUARE MEDIA INC | KENNAMETAL INC vs. Live Nation Entertainment | KENNAMETAL INC vs. XLMedia PLC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |