Correlation Between GALENA MINING and Retail Estates
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Retail Estates 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 Retail Estates 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 Retail Estates NV, you can compare the effects of market volatilities on GALENA MINING and Retail Estates 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 Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Retail Estates.
Diversification Opportunities for GALENA MINING and Retail Estates
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Retail is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Retail Estates NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates NV 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 Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates NV has no effect on the direction of GALENA MINING i.e., GALENA MINING and Retail Estates go up and down completely randomly.
Pair Corralation between GALENA MINING and Retail Estates
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Retail Estates. In addition to that, GALENA MINING is 1.76 times more volatile than Retail Estates NV. It trades about -0.05 of its total potential returns per unit of risk. Retail Estates NV is currently generating about 0.0 per unit of volatility. If you would invest 5,850 in Retail Estates NV on August 24, 2024 and sell it today you would lose (50.00) from holding Retail Estates NV or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GALENA MINING LTD vs. Retail Estates NV
Performance |
| Timeline |
| GALENA MINING LTD |
| Retail Estates NV |
GALENA MINING and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Retail Estates
The main advantage of trading using opposite GALENA MINING and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
| Retail Estates vs. Simon Property Group | Retail Estates vs. Vicinity Centres | Retail Estates vs. Superior Plus Corp | Retail Estates vs. NMI 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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