Correlation Between Galexxy Holdings and Cann American
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Cann American 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 Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Cann American Corp, you can compare the effects of market volatilities on Galexxy Holdings and Cann American 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 Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Cann American.
Diversification Opportunities for Galexxy Holdings and Cann American
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galexxy and Cann is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp 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 Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Cann American go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Cann American
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 4.22 times more return on investment than Cann American. However, Galexxy Holdings is 4.22 times more volatile than Cann American Corp. It trades about 0.21 of its potential returns per unit of risk. Cann American Corp is currently generating about -0.13 per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galexxy Holdings vs. Cann American Corp
Performance |
| Timeline |
| Galexxy Holdings |
| Cann American Corp |
Galexxy Holdings and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Cann American
The main advantage of trading using opposite Galexxy Holdings and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Galexxy Holdings vs. Delta 9 Cannabis | Galexxy Holdings vs. Body and Mind | Galexxy Holdings vs. CLS Holdings USA | Galexxy Holdings vs. Halo Collective |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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