Correlation Between Galexxy Holdings and Canntab Therapeutics
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Canntab Therapeutics 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 Canntab Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Canntab Therapeutics Limited, you can compare the effects of market volatilities on Galexxy Holdings and Canntab Therapeutics 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 Canntab Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Canntab Therapeutics.
Diversification Opportunities for Galexxy Holdings and Canntab Therapeutics
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galexxy and Canntab is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Canntab Therapeutics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canntab Therapeutics 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 Canntab Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canntab Therapeutics has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Canntab Therapeutics go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Canntab Therapeutics
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 0.78 times more return on investment than Canntab Therapeutics. However, Galexxy Holdings is 1.28 times less risky than Canntab Therapeutics. It trades about -0.1 of its potential returns per unit of risk. Canntab Therapeutics Limited is currently generating about -0.13 per unit of risk. If you would invest 2.70 in Galexxy Holdings on August 29, 2024 and sell it today you would lose (1.57) from holding Galexxy Holdings or give up 58.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galexxy Holdings vs. Canntab Therapeutics Limited
Performance |
| Timeline |
| Galexxy Holdings |
| Canntab Therapeutics |
Galexxy Holdings and Canntab Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Canntab Therapeutics
The main advantage of trading using opposite Galexxy Holdings and Canntab Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Canntab Therapeutics 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 Canntab Therapeutics will offset losses from the drop in Canntab Therapeutics' long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Canntab Therapeutics vs. Bionoid Pharma | Canntab Therapeutics vs. CTT Pharmaceutical Holdings | Canntab Therapeutics vs. Alterola Biotech | Canntab Therapeutics vs. HLS Therapeutics |
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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