Correlation Between Galaxy Gaming and GreenFirst Forest
Can any of the company-specific risk be diversified away by investing in both Galaxy Gaming and GreenFirst Forest 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 GreenFirst Forest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Gaming and GreenFirst Forest Products, you can compare the effects of market volatilities on Galaxy Gaming and GreenFirst Forest 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 GreenFirst Forest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Gaming and GreenFirst Forest.
Diversification Opportunities for Galaxy Gaming and GreenFirst Forest
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Galaxy and GreenFirst is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Gaming and GreenFirst Forest Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenFirst Forest 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 GreenFirst Forest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenFirst Forest has no effect on the direction of Galaxy Gaming i.e., Galaxy Gaming and GreenFirst Forest go up and down completely randomly.
Pair Corralation between Galaxy Gaming and GreenFirst Forest
Given the investment horizon of 90 days Galaxy Gaming is expected to generate 0.43 times more return on investment than GreenFirst Forest. However, Galaxy Gaming is 2.3 times less risky than GreenFirst Forest. It trades about 0.03 of its potential returns per unit of risk. GreenFirst Forest Products is currently generating about -0.47 per unit of risk. If you would invest 275.00 in Galaxy Gaming on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Galaxy Gaming or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Galaxy Gaming vs. GreenFirst Forest Products
Performance |
| Timeline |
| Galaxy Gaming |
| GreenFirst Forest |
Galaxy Gaming and GreenFirst Forest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Gaming and GreenFirst Forest
The main advantage of trading using opposite Galaxy Gaming and GreenFirst Forest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Gaming position performs unexpectedly, GreenFirst Forest 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 GreenFirst Forest will offset losses from the drop in GreenFirst Forest's long position.| Galaxy Gaming vs. Intema Solutions | Galaxy Gaming vs. 888 Holdings | Galaxy Gaming vs. Royal Wins | Galaxy Gaming vs. Real Luck Group |
| GreenFirst Forest vs. Fundamental Global | GreenFirst Forest vs. GreenFirst Forest Products | GreenFirst Forest vs. Galaxy Gaming | GreenFirst Forest vs. OppFi Inc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |