Correlation Between GALENA MINING and Northern Trust
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Northern Trust 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 Northern Trust 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 Northern Trust, you can compare the effects of market volatilities on GALENA MINING and Northern Trust 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 Northern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Northern Trust.
Diversification Opportunities for GALENA MINING and Northern Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Northern Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Trust 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 Northern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Trust has no effect on the direction of GALENA MINING i.e., GALENA MINING and Northern Trust go up and down completely randomly.
Pair Corralation between GALENA MINING and Northern Trust
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Northern Trust. In addition to that, GALENA MINING is 3.94 times more volatile than Northern Trust. It trades about -0.01 of its total potential returns per unit of risk. Northern Trust is currently generating about 0.09 per unit of volatility. If you would invest 6,660 in Northern Trust on September 12, 2024 and sell it today you would earn a total of 3,540 from holding Northern Trust or generate 53.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
GALENA MINING LTD vs. Northern Trust
Performance |
| Timeline |
| GALENA MINING LTD |
| Northern Trust |
GALENA MINING and Northern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Northern Trust
The main advantage of trading using opposite GALENA MINING and Northern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Northern Trust 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 Northern Trust will offset losses from the drop in Northern Trust'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 |
| Northern Trust vs. PREMIER FOODS | Northern Trust vs. Major Drilling Group | Northern Trust vs. NISSIN FOODS HLDGS | Northern Trust 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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