Correlation Between GALENA MINING and Nestl SA
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Nestl SA 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 Nestl SA 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 Nestl SA, you can compare the effects of market volatilities on GALENA MINING and Nestl SA 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 Nestl SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Nestl SA.
Diversification Opportunities for GALENA MINING and Nestl SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Nestl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Nestl SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nestl SA 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 Nestl SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nestl SA has no effect on the direction of GALENA MINING i.e., GALENA MINING and Nestl SA go up and down completely randomly.
Pair Corralation between GALENA MINING and Nestl SA
If you would invest 3.05 in GALENA MINING LTD on October 28, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
GALENA MINING LTD vs. Nestl SA
Performance |
| Timeline |
| GALENA MINING LTD |
| Nestl SA |
GALENA MINING and Nestl SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Nestl SA
The main advantage of trading using opposite GALENA MINING and Nestl SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Nestl SA 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 Nestl SA will offset losses from the drop in Nestl SA's long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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