Correlation Between Galaxy Digital and BIG Blockchain
Can any of the company-specific risk be diversified away by investing in both Galaxy Digital and BIG Blockchain 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 Galaxy Digital and BIG Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Digital Holdings and BIG Blockchain Intelligence, you can compare the effects of market volatilities on Galaxy Digital and BIG Blockchain 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 Galaxy Digital with a short position of BIG Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Digital and BIG Blockchain.
Diversification Opportunities for Galaxy Digital and BIG Blockchain
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Galaxy and BIG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Digital Holdings and BIG Blockchain Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIG Blockchain Intel and Galaxy Digital 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 Galaxy Digital Holdings are associated (or correlated) with BIG Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIG Blockchain Intel has no effect on the direction of Galaxy Digital i.e., Galaxy Digital and BIG Blockchain go up and down completely randomly.
Pair Corralation between Galaxy Digital and BIG Blockchain
Assuming the 90 days horizon Galaxy Digital Holdings is expected to generate 0.73 times more return on investment than BIG Blockchain. However, Galaxy Digital Holdings is 1.37 times less risky than BIG Blockchain. It trades about 0.13 of its potential returns per unit of risk. BIG Blockchain Intelligence is currently generating about 0.06 per unit of risk. If you would invest 1,406 in Galaxy Digital Holdings on October 22, 2024 and sell it today you would earn a total of 664.00 from holding Galaxy Digital Holdings or generate 47.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Digital Holdings vs. BIG Blockchain Intelligence
Performance |
| Timeline |
| Galaxy Digital Holdings |
| BIG Blockchain Intel |
Galaxy Digital and BIG Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Digital and BIG Blockchain
The main advantage of trading using opposite Galaxy Digital and BIG Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Digital position performs unexpectedly, BIG Blockchain 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 BIG Blockchain will offset losses from the drop in BIG Blockchain's long position.| Galaxy Digital vs. DeFi Technologies | Galaxy Digital vs. Argo Blockchain PLC | Galaxy Digital vs. DigiMax Global | Galaxy Digital vs. BIG Blockchain Intelligence |
| BIG Blockchain vs. DeFi Technologies | BIG Blockchain vs. Argo Blockchain PLC | BIG Blockchain vs. DigiMax Global | BIG Blockchain vs. Galaxy Digital Holdings |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |