Correlation Between GALENA MINING and LIFEWAY FOODS
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and LIFEWAY FOODS 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 LIFEWAY FOODS 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 LIFEWAY FOODS, you can compare the effects of market volatilities on GALENA MINING and LIFEWAY FOODS 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 LIFEWAY FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and LIFEWAY FOODS.
Diversification Opportunities for GALENA MINING and LIFEWAY FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and LIFEWAY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and LIFEWAY FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFEWAY FOODS 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 LIFEWAY FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFEWAY FOODS has no effect on the direction of GALENA MINING i.e., GALENA MINING and LIFEWAY FOODS go up and down completely randomly.
Pair Corralation between GALENA MINING and LIFEWAY FOODS
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the LIFEWAY FOODS. In addition to that, GALENA MINING is 1.15 times more volatile than LIFEWAY FOODS. It trades about -0.01 of its total potential returns per unit of risk. LIFEWAY FOODS is currently generating about 0.07 per unit of volatility. If you would invest 590.00 in LIFEWAY FOODS on September 4, 2024 and sell it today you would earn a total of 1,650 from holding LIFEWAY FOODS or generate 279.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. LIFEWAY FOODS
Performance |
| Timeline |
| GALENA MINING LTD |
| LIFEWAY FOODS |
GALENA MINING and LIFEWAY FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and LIFEWAY FOODS
The main advantage of trading using opposite GALENA MINING and LIFEWAY FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, LIFEWAY FOODS 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 LIFEWAY FOODS will offset losses from the drop in LIFEWAY FOODS's long position.| GALENA MINING vs. CDL INVESTMENT | GALENA MINING vs. SLR Investment Corp | GALENA MINING vs. ECHO INVESTMENT ZY | GALENA MINING vs. SEI INVESTMENTS |
| LIFEWAY FOODS vs. TOTAL GABON | LIFEWAY FOODS vs. Walgreens Boots Alliance | LIFEWAY FOODS vs. Peak Resources Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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