Correlation Between Target and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Target 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 Target and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Target Group and Galexxy Holdings, you can compare the effects of market volatilities on Target 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 Target with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Target and Galexxy Holdings.
Diversification Opportunities for Target and Galexxy Holdings
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Target and Galexxy is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Target Group and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Target 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 Target Group 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 Target i.e., Target and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Target and Galexxy Holdings
Given the investment horizon of 90 days Target is expected to generate 3.08 times less return on investment than Galexxy Holdings. But when comparing it to its historical volatility, Target Group is 2.03 times less risky than Galexxy Holdings. It trades about 0.14 of its potential returns per unit of risk. Galexxy Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.50 in Galexxy Holdings on November 7, 2024 and sell it today you would earn a total of 0.94 from holding Galexxy Holdings or generate 188.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Target Group vs. Galexxy Holdings
Performance |
| Timeline |
| Target Group |
| Galexxy Holdings |
Target and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Target and Galexxy Holdings
The main advantage of trading using opposite Target and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Target 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.| Target vs. Aequus Pharmaceuticals | Target vs. Filament Health Corp | Target vs. Sky Century Investment | Target vs. Levitee Labs |
| Galexxy Holdings vs. Delta 9 Cannabis | Galexxy Holdings vs. Body and Mind | Galexxy Holdings vs. CLS Holdings USA | Galexxy Holdings vs. Halo Collective |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |