Correlation Between GALENA MINING and International Consolidated
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and International Consolidated 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 International Consolidated 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 International Consolidated Airlines, you can compare the effects of market volatilities on GALENA MINING and International Consolidated 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 International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and International Consolidated.
Diversification Opportunities for GALENA MINING and International Consolidated
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated 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 International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of GALENA MINING i.e., GALENA MINING and International Consolidated go up and down completely randomly.
Pair Corralation between GALENA MINING and International Consolidated
If you would invest 301.00 in International Consolidated Airlines on September 24, 2024 and sell it today you would earn a total of 67.00 from holding International Consolidated Airlines or generate 22.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
GALENA MINING LTD vs. International Consolidated Air
Performance |
Timeline |
GALENA MINING LTD |
International Consolidated |
GALENA MINING and International Consolidated Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GALENA MINING and International Consolidated
The main advantage of trading using opposite GALENA MINING and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.GALENA MINING vs. Amkor Technology | GALENA MINING vs. Cardinal Health | GALENA MINING vs. Summit Hotel Properties | GALENA MINING vs. Playtech plc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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