Correlation Between Galexxy Holdings and Filament Health
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Filament Health 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 Filament Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Filament Health Corp, you can compare the effects of market volatilities on Galexxy Holdings and Filament Health 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 Filament Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Filament Health.
Diversification Opportunities for Galexxy Holdings and Filament Health
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Galexxy and Filament is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Filament Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filament Health 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 Filament Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filament Health Corp has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Filament Health go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Filament Health
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 3.45 times more return on investment than Filament Health. However, Galexxy Holdings is 3.45 times more volatile than Filament Health Corp. It trades about 0.19 of its potential returns per unit of risk. Filament Health Corp is currently generating about 0.02 per unit of risk. If you would invest 0.59 in Galexxy Holdings on October 30, 2024 and sell it today you would earn a total of 0.65 from holding Galexxy Holdings or generate 110.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Galexxy Holdings vs. Filament Health Corp
Performance |
| Timeline |
| Galexxy Holdings |
| Filament Health Corp |
Galexxy Holdings and Filament Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Filament Health
The main advantage of trading using opposite Galexxy Holdings and Filament Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Filament Health 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 Filament Health will offset losses from the drop in Filament Health's long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Filament Health vs. Target Group | Filament Health vs. Aequus Pharmaceuticals | Filament Health vs. Sky Century Investment | Filament Health vs. Levitee Labs |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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