Correlation Between SPARTAN STORES and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES 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 SPARTAN STORES and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and GALENA MINING LTD, you can compare the effects of market volatilities on SPARTAN STORES 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 SPARTAN STORES with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and GALENA MINING.
Diversification Opportunities for SPARTAN STORES and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPARTAN and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES i.e., SPARTAN STORES and GALENA MINING go up and down completely randomly.
Pair Corralation between SPARTAN STORES and GALENA MINING
Assuming the 90 days trading horizon SPARTAN STORES is expected to generate 0.29 times more return on investment than GALENA MINING. However, SPARTAN STORES is 3.44 times less risky than GALENA MINING. It trades about -0.03 of its potential returns per unit of risk. GALENA MINING LTD is currently generating about -0.02 per unit of risk. If you would invest 2,724 in SPARTAN STORES on August 31, 2024 and sell it today you would lose (944.00) from holding SPARTAN STORES or give up 34.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTAN STORES vs. GALENA MINING LTD
Performance |
| Timeline |
| SPARTAN STORES |
| GALENA MINING LTD |
SPARTAN STORES and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and GALENA MINING
The main advantage of trading using opposite SPARTAN STORES and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES 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.| SPARTAN STORES vs. SIVERS SEMICONDUCTORS AB | SPARTAN STORES vs. Darden Restaurants | SPARTAN STORES vs. Reliance Steel Aluminum | SPARTAN STORES vs. Q2M Managementberatung AG |
| GALENA MINING vs. LION ONE METALS | GALENA MINING vs. Penn National Gaming | GALENA MINING vs. GameStop Corp | GALENA MINING vs. TROPHY GAMES DEV |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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