Correlation Between GALENA MINING and Mohawk Industries
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Mohawk Industries 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 Mohawk Industries 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 Mohawk Industries, you can compare the effects of market volatilities on GALENA MINING and Mohawk Industries 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 Mohawk Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Mohawk Industries.
Diversification Opportunities for GALENA MINING and Mohawk Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Mohawk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Mohawk Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mohawk Industries 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 Mohawk Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mohawk Industries has no effect on the direction of GALENA MINING i.e., GALENA MINING and Mohawk Industries go up and down completely randomly.
Pair Corralation between GALENA MINING and Mohawk Industries
If you would invest 12,200 in Mohawk Industries on September 3, 2024 and sell it today you would earn a total of 800.00 from holding Mohawk Industries or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GALENA MINING LTD vs. Mohawk Industries
Performance |
| Timeline |
| GALENA MINING LTD |
| Mohawk Industries |
GALENA MINING and Mohawk Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Mohawk Industries
The main advantage of trading using opposite GALENA MINING and Mohawk Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Mohawk Industries 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 Mohawk Industries will offset losses from the drop in Mohawk Industries' long position.| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom International |
| Mohawk Industries vs. CVS Health | Mohawk Industries vs. GRIFFIN MINING LTD | Mohawk Industries vs. Addus HomeCare | Mohawk Industries vs. GALENA MINING LTD |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |