Correlation Between GALENA MINING and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Meiko Electronics 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 Meiko Electronics 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 Meiko Electronics Co, you can compare the effects of market volatilities on GALENA MINING and Meiko Electronics 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 Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Meiko Electronics.
Diversification Opportunities for GALENA MINING and Meiko Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Meiko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics 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 Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of GALENA MINING i.e., GALENA MINING and Meiko Electronics go up and down completely randomly.
Pair Corralation between GALENA MINING and Meiko Electronics
If you would invest 3,080 in Meiko Electronics Co on September 3, 2024 and sell it today you would earn a total of 2,620 from holding Meiko Electronics Co or generate 85.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.34% |
| Values | Daily Returns |
GALENA MINING LTD vs. Meiko Electronics Co
Performance |
| Timeline |
| GALENA MINING LTD |
| Meiko Electronics |
GALENA MINING and Meiko Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Meiko Electronics
The main advantage of trading using opposite GALENA MINING and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom International |
| Meiko Electronics vs. KCE EL PCL | Meiko Electronics vs. Benchmark Electronics | Meiko Electronics vs. Superior Plus Corp | Meiko Electronics vs. NMI Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |