Correlation Between Galaxy Digital and DigiMax Global
Can any of the company-specific risk be diversified away by investing in both Galaxy Digital and DigiMax Global 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 DigiMax Global 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 DigiMax Global, you can compare the effects of market volatilities on Galaxy Digital and DigiMax Global 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 DigiMax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Digital and DigiMax Global.
Diversification Opportunities for Galaxy Digital and DigiMax Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Galaxy and DigiMax is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Digital Holdings and DigiMax Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiMax Global 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 DigiMax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiMax Global has no effect on the direction of Galaxy Digital i.e., Galaxy Digital and DigiMax Global go up and down completely randomly.
Pair Corralation between Galaxy Digital and DigiMax Global
Assuming the 90 days horizon Galaxy Digital is expected to generate 37.42 times less return on investment than DigiMax Global. But when comparing it to its historical volatility, Galaxy Digital Holdings is 13.07 times less risky than DigiMax Global. It trades about 0.09 of its potential returns per unit of risk. DigiMax Global is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 9.92 in DigiMax Global on November 3, 2024 and sell it today you would earn a total of 90.08 from holding DigiMax Global or generate 908.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Galaxy Digital Holdings vs. DigiMax Global
Performance |
| Timeline |
| Galaxy Digital Holdings |
| DigiMax Global |
Galaxy Digital and DigiMax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Digital and DigiMax Global
The main advantage of trading using opposite Galaxy Digital and DigiMax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Digital position performs unexpectedly, DigiMax Global 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 DigiMax Global will offset losses from the drop in DigiMax Global'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 |
| DigiMax Global vs. DeFi Technologies | DigiMax Global vs. Argo Blockchain PLC | DigiMax Global vs. Galaxy Digital Holdings | DigiMax Global vs. BIG Blockchain Intelligence |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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