Correlation Between GALENA MINING and IND+COMMBK CHINA

Can any of the company-specific risk be diversified away by investing in both GALENA MINING and IND+COMMBK CHINA 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 IND+COMMBK CHINA 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 INDCOMMBK CHINA ADR20, you can compare the effects of market volatilities on GALENA MINING and IND+COMMBK CHINA 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 IND+COMMBK CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and IND+COMMBK CHINA.

Diversification Opportunities for GALENA MINING and IND+COMMBK CHINA

0.0

Correlation Coefficient

GALENA MINING  IND+COMMBK CHINA

Pay attention - limited upside

The 3 months correlation between GALENA and IND+COMMBK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and INDCOMMBK CHINA ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDCOMMBK CHINA ADR20 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 IND+COMMBK CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDCOMMBK CHINA ADR20 has no effect on the direction of GALENA MINING i.e., GALENA MINING and IND+COMMBK CHINA go up and down completely randomly.

Pair Corralation between GALENA MINING and IND+COMMBK CHINA

Assuming the 90 days horizon GALENA MINING is expected to generate 7.2 times less return on investment than IND+COMMBK CHINA. In addition to that, GALENA MINING is 2.82 times more volatile than INDCOMMBK CHINA ADR20. It trades about 0.0 of its total potential returns per unit of risk. INDCOMMBK CHINA ADR20 is currently generating about 0.06 per unit of volatility. If you would invest  753.00  in INDCOMMBK CHINA ADR20 on October 22, 2024 and sell it today you would earn a total of  447.00  from holding INDCOMMBK CHINA ADR20 or generate 59.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.75%
Values	Daily Returns

GALENA MINING LTD  vs.  INDCOMMBK CHINA ADR20

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

INDCOMMBK CHINA ADR20

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INDCOMMBK CHINA ADR20 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking signals, IND+COMMBK CHINA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GALENA MINING and IND+COMMBK CHINA

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

The idea behind GALENA MINING LTD and INDCOMMBK CHINA ADR20 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.