Correlation Between Galaxy Digital and BlockchainK2 Corp
Can any of the company-specific risk be diversified away by investing in both Galaxy Digital and BlockchainK2 Corp 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 BlockchainK2 Corp 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 BlockchainK2 Corp, you can compare the effects of market volatilities on Galaxy Digital and BlockchainK2 Corp 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 BlockchainK2 Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Digital and BlockchainK2 Corp.
Diversification Opportunities for Galaxy Digital and BlockchainK2 Corp
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galaxy and BlockchainK2 is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Digital Holdings and BlockchainK2 Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlockchainK2 Corp 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 BlockchainK2 Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlockchainK2 Corp has no effect on the direction of Galaxy Digital i.e., Galaxy Digital and BlockchainK2 Corp go up and down completely randomly.
Pair Corralation between Galaxy Digital and BlockchainK2 Corp
Assuming the 90 days horizon Galaxy Digital Holdings is expected to generate 0.5 times more return on investment than BlockchainK2 Corp. However, Galaxy Digital Holdings is 1.98 times less risky than BlockchainK2 Corp. It trades about 0.2 of its potential returns per unit of risk. BlockchainK2 Corp is currently generating about 0.06 per unit of risk. If you would invest 1,292 in Galaxy Digital Holdings on August 26, 2024 and sell it today you would earn a total of 403.00 from holding Galaxy Digital Holdings or generate 31.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Digital Holdings vs. BlockchainK2 Corp
Performance |
| Timeline |
| Galaxy Digital Holdings |
| BlockchainK2 Corp |
Galaxy Digital and BlockchainK2 Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Digital and BlockchainK2 Corp
The main advantage of trading using opposite Galaxy Digital and BlockchainK2 Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Digital position performs unexpectedly, BlockchainK2 Corp 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 BlockchainK2 Corp will offset losses from the drop in BlockchainK2 Corp'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 |
| BlockchainK2 Corp vs. DeFi Technologies | BlockchainK2 Corp vs. Argo Blockchain PLC | BlockchainK2 Corp vs. DigiMax Global | BlockchainK2 Corp 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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