Correlation Between GreenX Metals and Galena Mining
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Galena Mining 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 GreenX Metals and Galena Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Galena Mining, you can compare the effects of market volatilities on GreenX Metals and Galena Mining 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 GreenX Metals with a short position of Galena Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Galena Mining.
Diversification Opportunities for GreenX Metals and Galena Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GreenX and Galena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Galena Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galena Mining and GreenX Metals 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 GreenX Metals are associated (or correlated) with Galena Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galena Mining has no effect on the direction of GreenX Metals i.e., GreenX Metals and Galena Mining go up and down completely randomly.
Pair Corralation between GreenX Metals and Galena Mining
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Galena Mining. In addition to that, GreenX Metals is 28.66 times more volatile than Galena Mining. It trades about -0.03 of its total potential returns per unit of risk. Galena Mining is currently generating about -0.06 per unit of volatility. If you would invest 6.00 in Galena Mining on September 25, 2024 and sell it today you would lose (0.10) from holding Galena Mining or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Galena Mining
Performance |
| Timeline |
| GreenX Metals |
| Galena Mining |
GreenX Metals and Galena Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Galena Mining
The main advantage of trading using opposite GreenX Metals and Galena Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Galena Mining 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 Galena Mining will offset losses from the drop in Galena Mining's long position.| GreenX Metals vs. Garda Diversified Ppty | GreenX Metals vs. MFF Capital Investments | GreenX Metals vs. Beston Global Food | GreenX Metals vs. Computershare |
| Galena Mining vs. Retail Food Group | Galena Mining vs. Hotel Property Investments | Galena Mining vs. Catalyst Metals | Galena Mining vs. Centaurus Metals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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