Correlation Between GALENA MINING and US Physical
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and US Physical 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 US Physical 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 US Physical Therapy, you can compare the effects of market volatilities on GALENA MINING and US Physical 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 US Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and US Physical.
Diversification Opportunities for GALENA MINING and US Physical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and UPH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and US Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physical Therapy 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 US Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physical Therapy has no effect on the direction of GALENA MINING i.e., GALENA MINING and US Physical go up and down completely randomly.
Pair Corralation between GALENA MINING and US Physical
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the US Physical. In addition to that, GALENA MINING is 3.39 times more volatile than US Physical Therapy. It trades about -0.02 of its total potential returns per unit of risk. US Physical Therapy is currently generating about 0.01 per unit of volatility. If you would invest 8,893 in US Physical Therapy on November 5, 2024 and sell it today you would lose (393.00) from holding US Physical Therapy or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. US Physical Therapy
Performance |
| Timeline |
| GALENA MINING LTD |
| US Physical Therapy |
GALENA MINING and US Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and US Physical
The main advantage of trading using opposite GALENA MINING and US Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, US Physical 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 US Physical will offset losses from the drop in US Physical's long position.| GALENA MINING vs. OFFICE DEPOT | GALENA MINING vs. UNIVERSAL DISPLAY | GALENA MINING vs. Playtech plc | GALENA MINING vs. COLUMBIA SPORTSWEAR |
| US Physical vs. TITAN MACHINERY | US Physical vs. Hanison Construction Holdings | US Physical vs. Aluminum of | US Physical vs. Dairy Farm International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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