Correlation Between GALENA MINING and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on GALENA MINING and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and TRADEGATE.
Diversification Opportunities for GALENA MINING and TRADEGATE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and TRADEGATE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of GALENA MINING i.e., GALENA MINING and TRADEGATE go up and down completely randomly.
Pair Corralation between GALENA MINING and TRADEGATE
Assuming the 90 days horizon GALENA MINING LTD is expected to generate 7.05 times more return on investment than TRADEGATE. However, GALENA MINING is 7.05 times more volatile than TRADEGATE. It trades about 0.0 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.04 per unit of risk. If you would invest 6.00 in GALENA MINING LTD on September 1, 2024 and sell it today you would lose (2.95) from holding GALENA MINING LTD or give up 49.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
GALENA MINING LTD vs. TRADEGATE
Performance |
| Timeline |
| GALENA MINING LTD |
| TRADEGATE |
GALENA MINING and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and TRADEGATE
The main advantage of trading using opposite GALENA MINING and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Liontown Resources Limited | GALENA MINING vs. American Lithium Corp |
| TRADEGATE vs. SIVERS SEMICONDUCTORS AB | TRADEGATE vs. Darden Restaurants | TRADEGATE vs. Reliance Steel Aluminum | TRADEGATE vs. Q2M Managementberatung AG |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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