Correlation Between Galexxy Holdings and RIV Capital
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and RIV Capital 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 RIV Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and RIV Capital, you can compare the effects of market volatilities on Galexxy Holdings and RIV Capital 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 RIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and RIV Capital.
Diversification Opportunities for Galexxy Holdings and RIV Capital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Galexxy and RIV is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and RIV Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RIV Capital 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 RIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RIV Capital has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and RIV Capital go up and down completely randomly.
Pair Corralation between Galexxy Holdings and RIV Capital
Given the investment horizon of 90 days Galexxy Holdings is expected to under-perform the RIV Capital. In addition to that, Galexxy Holdings is 1.2 times more volatile than RIV Capital. It trades about -0.04 of its total potential returns per unit of risk. RIV Capital is currently generating about 0.0 per unit of volatility. If you would invest 13.00 in RIV Capital on August 29, 2024 and sell it today you would lose (5.10) from holding RIV Capital or give up 39.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galexxy Holdings vs. RIV Capital
Performance |
| Timeline |
| Galexxy Holdings |
| RIV Capital |
Galexxy Holdings and RIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and RIV Capital
The main advantage of trading using opposite Galexxy Holdings and RIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, RIV Capital 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 RIV Capital will offset losses from the drop in RIV Capital's long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| RIV Capital vs. Green Cures Botanical | RIV Capital vs. Cann American Corp | RIV Capital vs. Rimrock Gold Corp | RIV Capital vs. Galexxy Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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