Correlation Between Galexxy Holdings and Hypera SA
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Hypera SA 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 Hypera SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Hypera SA, you can compare the effects of market volatilities on Galexxy Holdings and Hypera SA 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 Hypera SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Hypera SA.
Diversification Opportunities for Galexxy Holdings and Hypera SA
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galexxy and Hypera is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Hypera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypera SA 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 Hypera SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypera SA has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Hypera SA go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Hypera SA
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 4.66 times more return on investment than Hypera SA. However, Galexxy Holdings is 4.66 times more volatile than Hypera SA. It trades about 0.02 of its potential returns per unit of risk. Hypera SA is currently generating about -0.06 per unit of risk. If you would invest 9.10 in Galexxy Holdings on August 26, 2024 and sell it today you would lose (7.49) from holding Galexxy Holdings or give up 82.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.59% |
| Values | Daily Returns |
Galexxy Holdings vs. Hypera SA
Performance |
| Timeline |
| Galexxy Holdings |
| Hypera SA |
Galexxy Holdings and Hypera SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Hypera SA
The main advantage of trading using opposite Galexxy Holdings and Hypera SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Hypera SA 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 Hypera SA will offset losses from the drop in Hypera SA's long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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