Correlation Between GALENA MINING and Penta Ocean
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Penta Ocean 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 Penta Ocean 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 Penta Ocean Construction Co, you can compare the effects of market volatilities on GALENA MINING and Penta Ocean 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 Penta Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Penta Ocean.
Diversification Opportunities for GALENA MINING and Penta Ocean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Penta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Penta Ocean Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Ocean Construc 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 Penta Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Ocean Construc has no effect on the direction of GALENA MINING i.e., GALENA MINING and Penta Ocean go up and down completely randomly.
Pair Corralation between GALENA MINING and Penta Ocean
If you would invest 392.00 in Penta Ocean Construction Co on October 30, 2024 and sell it today you would earn a total of 4.00 from holding Penta Ocean Construction Co or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
GALENA MINING LTD vs. Penta Ocean Construction Co
Performance |
| Timeline |
| GALENA MINING LTD |
| Penta Ocean Construc |
GALENA MINING and Penta Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Penta Ocean
The main advantage of trading using opposite GALENA MINING and Penta Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Penta Ocean 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 Penta Ocean will offset losses from the drop in Penta Ocean's long position.| GALENA MINING vs. Penn National Gaming | GALENA MINING vs. UNIQA INSURANCE GR | GALENA MINING vs. OURGAME INTHOLDL 00005 | GALENA MINING vs. Major Drilling Group |
| Penta Ocean vs. Nishi Nippon Railroad Co | Penta Ocean vs. United Airlines Holdings | Penta Ocean vs. NAGOYA RAILROAD | Penta Ocean vs. Transport International Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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