Correlation Between GALENA MINING and NIPPON TELTEL
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and NIPPON TELTEL 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 NIPPON TELTEL 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 NIPPON TELTEL, you can compare the effects of market volatilities on GALENA MINING and NIPPON TELTEL 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 NIPPON TELTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and NIPPON TELTEL.
Diversification Opportunities for GALENA MINING and NIPPON TELTEL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and NIPPON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and NIPPON TELTEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIPPON TELTEL 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 NIPPON TELTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIPPON TELTEL has no effect on the direction of GALENA MINING i.e., GALENA MINING and NIPPON TELTEL go up and down completely randomly.
Pair Corralation between GALENA MINING and NIPPON TELTEL
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the NIPPON TELTEL. In addition to that, GALENA MINING is 1.53 times more volatile than NIPPON TELTEL. It trades about -0.05 of its total potential returns per unit of risk. NIPPON TELTEL is currently generating about -0.02 per unit of volatility. If you would invest 106.00 in NIPPON TELTEL on September 23, 2024 and sell it today you would lose (10.00) from holding NIPPON TELTEL or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
GALENA MINING LTD vs. NIPPON TELTEL
Performance |
| Timeline |
| GALENA MINING LTD |
| NIPPON TELTEL |
GALENA MINING and NIPPON TELTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and NIPPON TELTEL
The main advantage of trading using opposite GALENA MINING and NIPPON TELTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, NIPPON TELTEL 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 NIPPON TELTEL will offset losses from the drop in NIPPON TELTEL's long position.| GALENA MINING vs. LG Display Co | GALENA MINING vs. SPORT LISBOA E | GALENA MINING vs. Transport International Holdings | GALENA MINING vs. JD SPORTS FASH |
| NIPPON TELTEL vs. LION ONE METALS | NIPPON TELTEL vs. Titan Machinery | NIPPON TELTEL vs. GALENA MINING LTD | NIPPON TELTEL vs. Zijin Mining Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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