Correlation Between GALENA MINING and LIVZON PHARMAC
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and LIVZON PHARMAC 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 LIVZON PHARMAC 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 LIVZON PHARMAC GRP, you can compare the effects of market volatilities on GALENA MINING and LIVZON PHARMAC 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 LIVZON PHARMAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and LIVZON PHARMAC.
Diversification Opportunities for GALENA MINING and LIVZON PHARMAC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and LIVZON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and LIVZON PHARMAC GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVZON PHARMAC GRP 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 LIVZON PHARMAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVZON PHARMAC GRP has no effect on the direction of GALENA MINING i.e., GALENA MINING and LIVZON PHARMAC go up and down completely randomly.
Pair Corralation between GALENA MINING and LIVZON PHARMAC
If you would invest 310.00 in LIVZON PHARMAC GRP on September 12, 2024 and sell it today you would earn a total of 12.00 from holding LIVZON PHARMAC GRP or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GALENA MINING LTD vs. LIVZON PHARMAC GRP
Performance |
| Timeline |
| GALENA MINING LTD |
| LIVZON PHARMAC GRP |
GALENA MINING and LIVZON PHARMAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and LIVZON PHARMAC
The main advantage of trading using opposite GALENA MINING and LIVZON PHARMAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, LIVZON PHARMAC 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 LIVZON PHARMAC will offset losses from the drop in LIVZON PHARMAC's long position.| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
| LIVZON PHARMAC vs. CanSino Biologics | LIVZON PHARMAC vs. Superior Plus Corp | LIVZON PHARMAC vs. SIVERS SEMICONDUCTORS AB | LIVZON PHARMAC vs. CHINA HUARONG ENERHD 50 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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