Correlation Between Aequus Pharmaceuticals and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Aequus Pharmaceuticals and Galexxy Holdings 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 Aequus Pharmaceuticals and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aequus Pharmaceuticals and Galexxy Holdings, you can compare the effects of market volatilities on Aequus Pharmaceuticals and Galexxy Holdings 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 Aequus Pharmaceuticals with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aequus Pharmaceuticals and Galexxy Holdings.
Diversification Opportunities for Aequus Pharmaceuticals and Galexxy Holdings
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aequus and Galexxy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aequus Pharmaceuticals and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Aequus Pharmaceuticals 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 Aequus Pharmaceuticals are associated (or correlated) with Galexxy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galexxy Holdings has no effect on the direction of Aequus Pharmaceuticals i.e., Aequus Pharmaceuticals and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Aequus Pharmaceuticals and Galexxy Holdings
Assuming the 90 days horizon Aequus Pharmaceuticals is expected to under-perform the Galexxy Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, Aequus Pharmaceuticals is 1.7 times less risky than Galexxy Holdings. The otc stock trades about -0.09 of its potential returns per unit of risk. The Galexxy Holdings is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4.50 in Galexxy Holdings on August 29, 2024 and sell it today you would lose (3.37) from holding Galexxy Holdings or give up 74.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aequus Pharmaceuticals vs. Galexxy Holdings
Performance |
| Timeline |
| Aequus Pharmaceuticals |
| Galexxy Holdings |
Aequus Pharmaceuticals and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aequus Pharmaceuticals and Galexxy Holdings
The main advantage of trading using opposite Aequus Pharmaceuticals and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aequus Pharmaceuticals position performs unexpectedly, Galexxy Holdings 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 Galexxy Holdings will offset losses from the drop in Galexxy Holdings' long position.| Aequus Pharmaceuticals vs. PayPal Holdings | Aequus Pharmaceuticals vs. Nasdaq Inc | Aequus Pharmaceuticals vs. Choice Hotels International | Aequus Pharmaceuticals vs. Microsoft |
| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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