Correlation Between GALENA MINING and MELIA HOTELS
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and MELIA HOTELS 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 MELIA HOTELS 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 MELIA HOTELS, you can compare the effects of market volatilities on GALENA MINING and MELIA HOTELS 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 MELIA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and MELIA HOTELS.
Diversification Opportunities for GALENA MINING and MELIA HOTELS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and MELIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and MELIA HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MELIA HOTELS 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 MELIA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MELIA HOTELS has no effect on the direction of GALENA MINING i.e., GALENA MINING and MELIA HOTELS go up and down completely randomly.
Pair Corralation between GALENA MINING and MELIA HOTELS
If you would invest 616.00 in MELIA HOTELS on November 7, 2024 and sell it today you would earn a total of 109.00 from holding MELIA HOTELS or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
GALENA MINING LTD vs. MELIA HOTELS
Performance |
| Timeline |
| GALENA MINING LTD |
| MELIA HOTELS |
GALENA MINING and MELIA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and MELIA HOTELS
The main advantage of trading using opposite GALENA MINING and MELIA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, MELIA HOTELS 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 MELIA HOTELS will offset losses from the drop in MELIA HOTELS's long position.| GALENA MINING vs. PLANT VEDA FOODS | GALENA MINING vs. COFCO Joycome Foods | GALENA MINING vs. Caseys General Stores | GALENA MINING vs. RETAIL FOOD GROUP |
| MELIA HOTELS vs. Urban Outfitters | MELIA HOTELS vs. THAI BEVERAGE | MELIA HOTELS vs. RYU Apparel | MELIA HOTELS vs. SENECA FOODS A |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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