Correlation Between CARSALES and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both CARSALES 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 CARSALES and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and GALENA MINING LTD, you can compare the effects of market volatilities on CARSALES 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 CARSALES with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALES and GALENA MINING.
Diversification Opportunities for CARSALES and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CARSALES and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM 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 CARSALES 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 CARSALESCOM 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 CARSALES i.e., CARSALES and GALENA MINING go up and down completely randomly.
Pair Corralation between CARSALES and GALENA MINING
If you would invest 2,280 in CARSALESCOM on September 4, 2024 and sell it today you would earn a total of 260.00 from holding CARSALESCOM or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CARSALESCOM vs. GALENA MINING LTD
Performance |
| Timeline |
| CARSALESCOM |
| GALENA MINING LTD |
CARSALES and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALES and GALENA MINING
The main advantage of trading using opposite CARSALES and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALES 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.| CARSALES vs. Mitsui Chemicals | CARSALES vs. USWE SPORTS AB | CARSALES vs. PLAYTIKA HOLDING DL 01 | CARSALES vs. COVIVIO HOTELS INH |
| GALENA MINING vs. CDL INVESTMENT | GALENA MINING vs. SLR Investment Corp | GALENA MINING vs. ECHO INVESTMENT ZY | GALENA MINING vs. SEI INVESTMENTS |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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