Correlation Between GALENA MINING and PG E
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and PG E 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 PG E 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 PG E P6, you can compare the effects of market volatilities on GALENA MINING and PG E 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 PG E. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and PG E.
Diversification Opportunities for GALENA MINING and PG E
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and PCG6 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 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 PG E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of GALENA MINING i.e., GALENA MINING and PG E go up and down completely randomly.
Pair Corralation between GALENA MINING and PG E
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the PG E. In addition to that, GALENA MINING is 4.44 times more volatile than PG E P6. It trades about -0.02 of its total potential returns per unit of risk. PG E P6 is currently generating about 0.05 per unit of volatility. If you would invest 1,612 in PG E P6 on September 13, 2024 and sell it today you would earn a total of 568.00 from holding PG E P6 or generate 35.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. PG E P6
Performance |
| Timeline |
| GALENA MINING LTD |
| PG E P6 |
GALENA MINING and PG E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and PG E
The main advantage of trading using opposite GALENA MINING and PG E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, PG E 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 PG E will offset losses from the drop in PG E'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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