Correlation Between Hitachi Construction and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Hitachi Construction 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 Hitachi Construction and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Construction Machinery and GALENA MINING LTD, you can compare the effects of market volatilities on Hitachi Construction 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 Hitachi Construction with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Construction and GALENA MINING.
Diversification Opportunities for Hitachi Construction and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hitachi and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Construction Machinery and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD and Hitachi Construction 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 Hitachi Construction Machinery 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 LTD has no effect on the direction of Hitachi Construction i.e., Hitachi Construction and GALENA MINING go up and down completely randomly.
Pair Corralation between Hitachi Construction and GALENA MINING
Assuming the 90 days horizon Hitachi Construction Machinery is expected to generate 1.08 times more return on investment than GALENA MINING. However, Hitachi Construction is 1.08 times more volatile than GALENA MINING LTD. It trades about 0.0 of its potential returns per unit of risk. GALENA MINING LTD is currently generating about -0.05 per unit of risk. If you would invest 2,240 in Hitachi Construction Machinery on September 3, 2024 and sell it today you would lose (140.00) from holding Hitachi Construction Machinery or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hitachi Construction Machinery vs. GALENA MINING LTD
Performance |
| Timeline |
| Hitachi Construction |
| GALENA MINING LTD |
Hitachi Construction and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Construction and GALENA MINING
The main advantage of trading using opposite Hitachi Construction and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Construction 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.| Hitachi Construction vs. REVO INSURANCE SPA | Hitachi Construction vs. TFS FINANCIAL | Hitachi Construction vs. Cars Inc | Hitachi Construction vs. Geely Automobile Holdings |
| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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