Correlation Between Galexxy Holdings and Target
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Target 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 Galexxy Holdings and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Target Group, you can compare the effects of market volatilities on Galexxy Holdings and Target 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 Galexxy Holdings with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Target.
Diversification Opportunities for Galexxy Holdings and Target
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Galexxy and Target is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Target Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target Group and Galexxy Holdings 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 Galexxy Holdings are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target Group has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Target go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Target
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 7.59 times less return on investment than Target. But when comparing it to its historical volatility, Galexxy Holdings is 2.03 times less risky than Target. It trades about 0.02 of its potential returns per unit of risk. Target Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.75 in Target Group on August 26, 2024 and sell it today you would lose (0.51) from holding Target Group or give up 68.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.59% |
| Values | Daily Returns |
Galexxy Holdings vs. Target Group
Performance |
| Timeline |
| Galexxy Holdings |
| Target Group |
Galexxy Holdings and Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Target
The main advantage of trading using opposite Galexxy Holdings and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Target vs. Green Cures Botanical | Target vs. Galexxy Holdings | Target vs. Indoor Harvest Corp | Target vs. Speakeasy Cannabis Club |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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