Correlation Between Northern Star and Galena Mining
Can any of the company-specific risk be diversified away by investing in both Northern Star 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 Northern Star and Galena Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Star Resources and Galena Mining, you can compare the effects of market volatilities on Northern Star 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 Northern Star with a short position of Galena Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Star and Galena Mining.
Diversification Opportunities for Northern Star and Galena Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and Galena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Star Resources and Galena Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galena Mining and Northern Star 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 Northern Star Resources 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 Northern Star i.e., Northern Star and Galena Mining go up and down completely randomly.
Pair Corralation between Northern Star and Galena Mining
If you would invest 5.90 in Galena Mining on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Galena Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Northern Star Resources vs. Galena Mining
Performance |
| Timeline |
| Northern Star Resources |
| Galena Mining |
Northern Star and Galena Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Star and Galena Mining
The main advantage of trading using opposite Northern Star and Galena Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Star 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.| Northern Star vs. Pinnacle Investment Management | Northern Star vs. Clime Investment Management | Northern Star vs. Diversified United Investment | Northern Star vs. Platinum Asset Management |
| Galena Mining vs. Northern Star Resources | Galena Mining vs. Evolution Mining | Galena Mining vs. Bluescope Steel | Galena Mining vs. Sandfire Resources NL |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets |