Correlation Between GALENA MINING and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Gaztransport Technigaz 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 Gaztransport Technigaz 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 Gaztransport Technigaz SA, you can compare the effects of market volatilities on GALENA MINING and Gaztransport Technigaz 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 Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Gaztransport Technigaz.
Diversification Opportunities for GALENA MINING and Gaztransport Technigaz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Gaztransport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz 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 Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of GALENA MINING i.e., GALENA MINING and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between GALENA MINING and Gaztransport Technigaz
If you would invest 12,569 in Gaztransport Technigaz SA on October 22, 2024 and sell it today you would earn a total of 1,811 from holding Gaztransport Technigaz SA or generate 14.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
GALENA MINING LTD vs. Gaztransport Technigaz SA
Performance |
Timeline |
GALENA MINING LTD |
Gaztransport Technigaz |
GALENA MINING and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GALENA MINING and Gaztransport Technigaz
The main advantage of trading using opposite GALENA MINING and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.GALENA MINING vs. TRADELINK ELECTRON | GALENA MINING vs. CEOTRONICS | GALENA MINING vs. Canon Marketing Japan | GALENA MINING vs. MARKET VECTR RETAIL |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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