Correlation Between KHD Humboldt and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both KHD Humboldt 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 KHD Humboldt and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KHD Humboldt Wedag and GALENA MINING LTD, you can compare the effects of market volatilities on KHD Humboldt 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 KHD Humboldt with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of KHD Humboldt and GALENA MINING.
Diversification Opportunities for KHD Humboldt and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KHD and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KHD Humboldt Wedag 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 KHD Humboldt 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 KHD Humboldt Wedag 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 KHD Humboldt i.e., KHD Humboldt and GALENA MINING go up and down completely randomly.
Pair Corralation between KHD Humboldt and GALENA MINING
If you would invest 730.00 in KHD Humboldt Wedag on September 2, 2024 and sell it today you would earn a total of 60.00 from holding KHD Humboldt Wedag or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KHD Humboldt Wedag vs. GALENA MINING LTD
Performance |
| Timeline |
| KHD Humboldt Wedag |
| GALENA MINING LTD |
KHD Humboldt and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KHD Humboldt and GALENA MINING
The main advantage of trading using opposite KHD Humboldt and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KHD Humboldt 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.| KHD Humboldt vs. JAPAN AIRLINES | KHD Humboldt vs. FARO Technologies | KHD Humboldt vs. Charter Communications | KHD Humboldt vs. Singapore Telecommunications Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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