Correlation Between Galaxy Gaming and Skillz Platform
Can any of the company-specific risk be diversified away by investing in both Galaxy Gaming and Skillz Platform 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 Skillz Platform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Gaming and Skillz Platform, you can compare the effects of market volatilities on Galaxy Gaming and Skillz Platform 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 Skillz Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Gaming and Skillz Platform.
Diversification Opportunities for Galaxy Gaming and Skillz Platform
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galaxy and Skillz is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Gaming and Skillz Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skillz Platform 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 Skillz Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skillz Platform has no effect on the direction of Galaxy Gaming i.e., Galaxy Gaming and Skillz Platform go up and down completely randomly.
Pair Corralation between Galaxy Gaming and Skillz Platform
Given the investment horizon of 90 days Galaxy Gaming is expected to generate 2.52 times more return on investment than Skillz Platform. However, Galaxy Gaming is 2.52 times more volatile than Skillz Platform. It trades about 0.07 of its potential returns per unit of risk. Skillz Platform is currently generating about 0.03 per unit of risk. If you would invest 155.00 in Galaxy Gaming on October 25, 2024 and sell it today you would earn a total of 121.00 from holding Galaxy Gaming or generate 78.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Galaxy Gaming vs. Skillz Platform
Performance |
| Timeline |
| Galaxy Gaming |
| Skillz Platform |
Galaxy Gaming and Skillz Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Gaming and Skillz Platform
The main advantage of trading using opposite Galaxy Gaming and Skillz Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Gaming position performs unexpectedly, Skillz Platform 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 Skillz Platform will offset losses from the drop in Skillz Platform's long position.| Galaxy Gaming vs. Intema Solutions | Galaxy Gaming vs. 888 Holdings | Galaxy Gaming vs. Royal Wins | Galaxy Gaming vs. Real Luck Group |
| Skillz Platform vs. Bilibili | Skillz Platform vs. Take Two Interactive Software | Skillz Platform vs. NetEase | Skillz Platform vs. Roblox Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings 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 |