Correlation Between GALENA MINING and Microsoft
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Microsoft 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 Microsoft 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 Microsoft, you can compare the effects of market volatilities on GALENA MINING and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Microsoft.
Diversification Opportunities for GALENA MINING and Microsoft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Microsoft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of GALENA MINING i.e., GALENA MINING and Microsoft go up and down completely randomly.
Pair Corralation between GALENA MINING and Microsoft
If you would invest 40,125 in Microsoft on August 30, 2024 and sell it today you would lose (125.00) from holding Microsoft or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
GALENA MINING LTD vs. Microsoft
Performance |
| Timeline |
| GALENA MINING LTD |
| Microsoft |
GALENA MINING and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Microsoft
The main advantage of trading using opposite GALENA MINING and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| GALENA MINING vs. CN MODERN DAIRY | GALENA MINING vs. AUSNUTRIA DAIRY | GALENA MINING vs. Tyson Foods | GALENA MINING vs. SEKISUI CHEMICAL |
| Microsoft vs. New Residential Investment | Microsoft vs. Flutter Entertainment PLC | Microsoft vs. Dave Busters Entertainment | Microsoft vs. JD SPORTS FASH |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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