Correlation Between GALENA MINING and SLR Investment
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and SLR Investment 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 SLR Investment 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 SLR Investment Corp, you can compare the effects of market volatilities on GALENA MINING and SLR Investment 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 SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and SLR Investment.
Diversification Opportunities for GALENA MINING and SLR Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and SLR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp 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 SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of GALENA MINING i.e., GALENA MINING and SLR Investment go up and down completely randomly.
Pair Corralation between GALENA MINING and SLR Investment
If you would invest 1,404 in SLR Investment Corp on August 28, 2024 and sell it today you would earn a total of 144.00 from holding SLR Investment Corp or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
GALENA MINING LTD vs. SLR Investment Corp
Performance |
| Timeline |
| GALENA MINING LTD |
| SLR Investment Corp |
GALENA MINING and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and SLR Investment
The main advantage of trading using opposite GALENA MINING and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. NMI Holdings | GALENA MINING vs. Origin Agritech | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
| SLR Investment vs. The Bank of | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI Holdings | SLR Investment vs. Origin Agritech |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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