Correlation Between Warehouses and GALENA MINING

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Can any of the company-specific risk be diversified away by investing in both Warehouses and GALENA MINING 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 Warehouses and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Warehouses De Pauw and GALENA MINING LTD, you can compare the effects of market volatilities on Warehouses and GALENA MINING 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 Warehouses with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warehouses and GALENA MINING.

Diversification Opportunities for Warehouses and GALENA MINING

WarehousesGALENADiversified AwayWarehousesGALENADiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Warehouses and GALENA MINING

If you would invest  2,008  in Warehouses De Pauw on November 18, 2024 and sell it today you would earn a total of  132.00  from holding Warehouses De Pauw or generate 6.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.36%
ValuesDaily Returns

Warehouses De Pauw  vs.  GALENA MINING LTD

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -14-12-10-8-6-4-2
JavaScript chart by amCharts 3.21.15WPHB GM6
       Timeline  
Warehouses De Pauw 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Warehouses De Pauw are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Warehouses may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb18.51919.52020.52121.5
GALENA MINING LTD 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.03050.0310.0315

Warehouses and GALENA MINING Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.73-4.29-2.85-1.410.01.432.894.355.81 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15WPHB GM6
       Returns  

Pair Trading with Warehouses and GALENA MINING

The main advantage of trading using opposite Warehouses and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Warehouses position performs unexpectedly, GALENA MINING 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 GALENA MINING will offset losses from the drop in GALENA MINING's long position.
The idea behind Warehouses De Pauw and GALENA MINING LTD 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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