Correlation Between GALENA MINING and Norsk Hydro
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Norsk Hydro 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 Norsk Hydro 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 Norsk Hydro ASA, you can compare the effects of market volatilities on GALENA MINING and Norsk Hydro 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 Norsk Hydro. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Norsk Hydro.
Diversification Opportunities for GALENA MINING and Norsk Hydro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Norsk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Norsk Hydro ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norsk Hydro ASA 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 Norsk Hydro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norsk Hydro ASA has no effect on the direction of GALENA MINING i.e., GALENA MINING and Norsk Hydro go up and down completely randomly.
Pair Corralation between GALENA MINING and Norsk Hydro
If you would invest 549.00 in Norsk Hydro ASA on September 15, 2024 and sell it today you would earn a total of 17.00 from holding Norsk Hydro ASA or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GALENA MINING LTD vs. Norsk Hydro ASA
Performance |
| Timeline |
| GALENA MINING LTD |
| Norsk Hydro ASA |
GALENA MINING and Norsk Hydro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Norsk Hydro
The main advantage of trading using opposite GALENA MINING and Norsk Hydro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Norsk Hydro 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 Norsk Hydro will offset losses from the drop in Norsk Hydro's long position.| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
| Norsk Hydro vs. GALENA MINING LTD | Norsk Hydro vs. Cogent Communications Holdings | Norsk Hydro vs. GREENX METALS LTD | Norsk Hydro vs. T MOBILE US |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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