Correlation Between Koninklijke Philips and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Koninklijke Philips 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 Koninklijke Philips and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koninklijke Philips NV and GALENA MINING LTD, you can compare the effects of market volatilities on Koninklijke Philips 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 Koninklijke Philips with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Philips and GALENA MINING.
Diversification Opportunities for Koninklijke Philips and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Koninklijke and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Philips NV 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 Koninklijke Philips 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 Koninklijke Philips NV 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 Koninklijke Philips i.e., Koninklijke Philips and GALENA MINING go up and down completely randomly.
Pair Corralation between Koninklijke Philips and GALENA MINING
If you would invest 2,484 in Koninklijke Philips NV on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Koninklijke Philips NV or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Koninklijke Philips NV vs. GALENA MINING LTD
Performance |
| Timeline |
| Koninklijke Philips |
| GALENA MINING LTD |
Koninklijke Philips and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Philips and GALENA MINING
The main advantage of trading using opposite Koninklijke Philips and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Philips 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.| Koninklijke Philips vs. Ribbon Communications | Koninklijke Philips vs. Cogent Communications Holdings | Koninklijke Philips vs. Spirent Communications plc | Koninklijke Philips vs. CHINA TELECOM H |
| GALENA MINING vs. American Lithium Corp | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp | GALENA MINING vs. SIVERS SEMICONDUCTORS AB |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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