Correlation Between Galexxy Holdings and C21 Investments
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and C21 Investments 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 C21 Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and C21 Investments, you can compare the effects of market volatilities on Galexxy Holdings and C21 Investments 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 C21 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and C21 Investments.
Diversification Opportunities for Galexxy Holdings and C21 Investments
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galexxy and C21 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and C21 Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C21 Investments 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 C21 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C21 Investments has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and C21 Investments go up and down completely randomly.
Pair Corralation between Galexxy Holdings and C21 Investments
Given the investment horizon of 90 days Galexxy Holdings is expected to under-perform the C21 Investments. In addition to that, Galexxy Holdings is 1.45 times more volatile than C21 Investments. It trades about -0.04 of its total potential returns per unit of risk. C21 Investments is currently generating about 0.0 per unit of volatility. If you would invest 31.00 in C21 Investments on August 29, 2024 and sell it today you would lose (9.00) from holding C21 Investments or give up 29.03% 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. C21 Investments
Performance |
| Timeline |
| Galexxy Holdings |
| C21 Investments |
Galexxy Holdings and C21 Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and C21 Investments
The main advantage of trading using opposite Galexxy Holdings and C21 Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, C21 Investments 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 C21 Investments will offset losses from the drop in C21 Investments' long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| C21 Investments vs. Green Cures Botanical | C21 Investments vs. Cann American Corp | C21 Investments vs. Rimrock Gold Corp | C21 Investments 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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