Correlation Between GALENA MINING and NEXANS
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and NEXANS 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 NEXANS 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 NEXANS, you can compare the effects of market volatilities on GALENA MINING and NEXANS 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 NEXANS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and NEXANS.
Diversification Opportunities for GALENA MINING and NEXANS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and NEXANS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and NEXANS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXANS 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 NEXANS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXANS has no effect on the direction of GALENA MINING i.e., GALENA MINING and NEXANS go up and down completely randomly.
Pair Corralation between GALENA MINING and NEXANS
If you would invest 3.05 in GALENA MINING LTD on October 25, 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 | 88.89% |
| Values | Daily Returns |
GALENA MINING LTD vs. NEXANS
Performance |
| Timeline |
| GALENA MINING LTD |
| NEXANS |
GALENA MINING and NEXANS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and NEXANS
The main advantage of trading using opposite GALENA MINING and NEXANS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, NEXANS 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 NEXANS will offset losses from the drop in NEXANS's long position.| GALENA MINING vs. UNIQA INSURANCE GR | GALENA MINING vs. Discover Financial Services | GALENA MINING vs. Iridium Communications | GALENA MINING vs. Sun Life Financial |
| NEXANS vs. Endeavour Mining PLC | NEXANS vs. Harmony Gold Mining | NEXANS vs. GALENA MINING LTD | NEXANS vs. Monument Mining Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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