Correlation Between GALENA MINING and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance, you can compare the effects of market volatilities on GALENA MINING and Singapore Reinsurance 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 Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Singapore Reinsurance.
Diversification Opportunities for GALENA MINING and Singapore Reinsurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Singapore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance 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 Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of GALENA MINING i.e., GALENA MINING and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between GALENA MINING and Singapore Reinsurance
If you would invest 3,100 in Singapore Reinsurance on August 25, 2024 and sell it today you would earn a total of 300.00 from holding Singapore Reinsurance or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GALENA MINING LTD vs. Singapore Reinsurance
Performance |
| Timeline |
| GALENA MINING LTD |
| Singapore Reinsurance |
GALENA MINING and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Singapore Reinsurance
The main advantage of trading using opposite GALENA MINING and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Singapore Reinsurance 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 Singapore Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. NMI Holdings |
| Singapore Reinsurance vs. COPLAND ROAD CAPITAL | Singapore Reinsurance vs. SOFTBANK P ADR | Singapore Reinsurance vs. PT Bank Maybank | Singapore Reinsurance vs. Texas Roadhouse |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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