Correlation Between Filament Health and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Filament Health 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 Filament Health and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filament Health Corp and Galexxy Holdings, you can compare the effects of market volatilities on Filament Health 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 Filament Health with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filament Health and Galexxy Holdings.
Diversification Opportunities for Filament Health and Galexxy Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Filament and Galexxy is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Filament Health Corp and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Filament Health 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 Filament Health Corp 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 Filament Health i.e., Filament Health and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Filament Health and Galexxy Holdings
Assuming the 90 days horizon Filament Health Corp is expected to under-perform the Galexxy Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, Filament Health Corp is 3.47 times less risky than Galexxy Holdings. The otc stock trades about -0.13 of its potential returns per unit of risk. The 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 | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Filament Health Corp vs. Galexxy Holdings
Performance |
| Timeline |
| Filament Health Corp |
| Galexxy Holdings |
Filament Health and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filament Health and Galexxy Holdings
The main advantage of trading using opposite Filament Health and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filament Health 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.| Filament Health vs. Delta 9 Cannabis | Filament Health vs. Body and Mind | Filament Health vs. CLS Holdings USA | Filament Health vs. Halo Collective |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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