Correlation Between Home Depot and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Home Depot 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 Home Depot and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Home Depot and GALENA MINING LTD, you can compare the effects of market volatilities on Home Depot 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 Home Depot with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and GALENA MINING.
Diversification Opportunities for Home Depot and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Home and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot 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 Home Depot 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 The Home Depot 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 Home Depot i.e., Home Depot and GALENA MINING go up and down completely randomly.
Pair Corralation between Home Depot and GALENA MINING
If you would invest 37,000 in The Home Depot on August 25, 2024 and sell it today you would earn a total of 3,075 from holding The Home Depot or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
The Home Depot vs. GALENA MINING LTD
Performance |
| Timeline |
| Home Depot |
| GALENA MINING LTD |
Home Depot and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and GALENA MINING
The main advantage of trading using opposite Home Depot and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot 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.| Home Depot vs. LESLIES INC DL | Home Depot vs. WICKES GROUP PLC | Home Depot vs. Superior Plus Corp | Home Depot vs. NMI Holdings |
| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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