Correlation Between Galena Mining and TTG Fintech

Can any of the company-specific risk be diversified away by investing in both Galena Mining and TTG Fintech 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 Galena Mining and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Galena Mining and TTG Fintech, you can compare the effects of market volatilities on Galena Mining and TTG Fintech 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 Galena Mining with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and TTG Fintech.

Diversification Opportunities for Galena Mining and TTG Fintech

0.0

Correlation Coefficient

Galena Mining  TTG Fintech

Pay attention - limited upside

The 3 months correlation between Galena and TTG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Galena Mining 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 Galena Mining are associated (or correlated) with TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Galena Mining i.e., Galena Mining and TTG Fintech go up and down completely randomly.

Pair Corralation between Galena Mining and TTG Fintech

If you would invest  0.60  in TTG Fintech on September 26, 2024 and sell it today you would earn a total of  0.10  from holding TTG Fintech or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Galena Mining  vs.  TTG Fintech

Galena Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Galena Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Galena Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

TTG Fintech

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TTG Fintech are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, TTG Fintech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galena Mining and TTG Fintech

The main advantage of trading using opposite Galena Mining and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.

The idea behind Galena Mining and TTG Fintech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.