Correlation Between GALENA MINING and Check Point

Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Check Point 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 Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GALENA MINING LTD and Check Point Software, you can compare the effects of market volatilities on GALENA MINING and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Check Point.

Diversification Opportunities for GALENA MINING and Check Point

0.0

Correlation Coefficient

GALENA MINING  Check Point

Pay attention - limited upside

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

Pair Corralation between GALENA MINING and Check Point

If you would invest  16,445  in Check Point Software on September 19, 2024 and sell it today you would earn a total of  1,570  from holding Check Point Software or generate 9.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

GALENA MINING LTD  vs.  Check Point Software

GALENA MINING LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GALENA MINING LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GALENA MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Check Point Software

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Check Point Software are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Check Point may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with GALENA MINING and Check Point

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

The idea behind GALENA MINING LTD and Check Point Software 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.