Correlation Between Galexxy Holdings and Cannabis Suisse
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Cannabis Suisse 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 Cannabis Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Cannabis Suisse Corp, you can compare the effects of market volatilities on Galexxy Holdings and Cannabis Suisse 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 Cannabis Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Cannabis Suisse.
Diversification Opportunities for Galexxy Holdings and Cannabis Suisse
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galexxy and Cannabis is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Cannabis Suisse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Suisse 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 Cannabis Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Suisse Corp has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Cannabis Suisse go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Cannabis Suisse
Given the investment horizon of 90 days Galexxy Holdings is expected to under-perform the Cannabis Suisse. But the pink sheet apears to be less risky and, when comparing its historical volatility, Galexxy Holdings is 5.3 times less risky than Cannabis Suisse. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Cannabis Suisse Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1.42 in Cannabis Suisse Corp on August 28, 2024 and sell it today you would earn a total of 0.38 from holding Cannabis Suisse Corp or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galexxy Holdings vs. Cannabis Suisse Corp
Performance |
| Timeline |
| Galexxy Holdings |
| Cannabis Suisse Corp |
Galexxy Holdings and Cannabis Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Cannabis Suisse
The main advantage of trading using opposite Galexxy Holdings and Cannabis Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Cannabis Suisse 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 Cannabis Suisse will offset losses from the drop in Cannabis Suisse's long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Cannabis Suisse vs. Greater Cannabis | Cannabis Suisse vs. Global Hemp Group | Cannabis Suisse vs. Maple Leaf Green | Cannabis Suisse vs. Mc Endvrs |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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