Correlation Between Galexxy Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Galexxy Holdings and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Dow Jones.
Diversification Opportunities for Galexxy Holdings and Dow Jones
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galexxy and Dow is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Dow Jones
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 25.09 times more return on investment than Dow Jones. However, Galexxy Holdings is 25.09 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 5.50 in Galexxy Holdings on November 8, 2024 and sell it today you would lose (4.06) from holding Galexxy Holdings or give up 73.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Galexxy Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Galexxy Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Galexxy Holdings
Pair trading matchups for Galexxy Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Galexxy Holdings and Dow Jones
The main advantage of trading using opposite Galexxy Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Dow Jones vs. National Vision Holdings | Dow Jones vs. Grocery Outlet Holding | Dow Jones vs. Asbury Automotive Group | Dow Jones vs. Hanover Foods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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