Correlation Between Galaxy Gaming and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Galaxy Gaming and Dow Jones 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 Gaming and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Gaming and Dow Jones Industrial, you can compare the effects of market volatilities on Galaxy Gaming and Dow Jones 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 Gaming with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Gaming and Dow Jones.
Diversification Opportunities for Galaxy Gaming and Dow Jones
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galaxy and Dow is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Gaming and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Galaxy Gaming 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 Gaming are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Galaxy Gaming i.e., Galaxy Gaming and Dow Jones go up and down completely randomly.
Pair Corralation between Galaxy Gaming and Dow Jones
Given the investment horizon of 90 days Galaxy Gaming is expected to generate 7.86 times more return on investment than Dow Jones. However, Galaxy Gaming is 7.86 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 230.00 in Galaxy Gaming on August 28, 2024 and sell it today you would earn a total of 44.00 from holding Galaxy Gaming or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Galaxy Gaming vs. Dow Jones Industrial
Performance |
| Timeline |
Galaxy Gaming and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Galaxy Gaming
Pair trading matchups for Galaxy Gaming
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Galaxy Gaming and Dow Jones
The main advantage of trading using opposite Galaxy Gaming and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Gaming position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Galaxy Gaming vs. Intema Solutions | Galaxy Gaming vs. 888 Holdings | Galaxy Gaming vs. Royal Wins | Galaxy Gaming vs. Real Luck Group |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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