Correlation Between Babcock Wilcox and Galaxy Payroll
Can any of the company-specific risk be diversified away by investing in both Babcock Wilcox and Galaxy Payroll 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 Babcock Wilcox and Galaxy Payroll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babcock Wilcox Enterprises and Galaxy Payroll Group, you can compare the effects of market volatilities on Babcock Wilcox and Galaxy Payroll 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 Babcock Wilcox with a short position of Galaxy Payroll. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babcock Wilcox and Galaxy Payroll.
Diversification Opportunities for Babcock Wilcox and Galaxy Payroll
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Babcock and Galaxy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Babcock Wilcox Enterprises and Galaxy Payroll Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Payroll Group and Babcock Wilcox 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 Babcock Wilcox Enterprises are associated (or correlated) with Galaxy Payroll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Payroll Group has no effect on the direction of Babcock Wilcox i.e., Babcock Wilcox and Galaxy Payroll go up and down completely randomly.
Pair Corralation between Babcock Wilcox and Galaxy Payroll
Allowing for the 90-day total investment horizon Babcock Wilcox is expected to generate 28.23 times less return on investment than Galaxy Payroll. But when comparing it to its historical volatility, Babcock Wilcox Enterprises is 20.2 times less risky than Galaxy Payroll. It trades about 0.09 of its potential returns per unit of risk. Galaxy Payroll Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Galaxy Payroll Group on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Galaxy Payroll Group or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 45.24% |
| Values | Daily Returns |
Babcock Wilcox Enterprises vs. Galaxy Payroll Group
Performance |
| Timeline |
| Babcock Wilcox Enter |
| Galaxy Payroll Group |
Babcock Wilcox and Galaxy Payroll Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Babcock Wilcox and Galaxy Payroll
The main advantage of trading using opposite Babcock Wilcox and Galaxy Payroll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babcock Wilcox position performs unexpectedly, Galaxy Payroll 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 Galaxy Payroll will offset losses from the drop in Galaxy Payroll's long position.| Babcock Wilcox vs. Enerpac Tool Group | Babcock Wilcox vs. Gorman Rupp | Babcock Wilcox vs. Crane Company | Babcock Wilcox vs. Franklin Electric Co |
| Galaxy Payroll vs. Insperity | Galaxy Payroll vs. Ziprecruiter | Galaxy Payroll vs. Nixxy, Inc | Galaxy Payroll vs. Click Holdings Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |