Correlation Between Galexxy Holdings and Lobe Sciences
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Lobe Sciences 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 Lobe Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Lobe Sciences, you can compare the effects of market volatilities on Galexxy Holdings and Lobe Sciences 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 Lobe Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Lobe Sciences.
Diversification Opportunities for Galexxy Holdings and Lobe Sciences
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galexxy and Lobe is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Lobe Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lobe Sciences 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 Lobe Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lobe Sciences has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Lobe Sciences go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Lobe Sciences
Given the investment horizon of 90 days Galexxy Holdings is expected to under-perform the Lobe Sciences. But the pink sheet apears to be less risky and, when comparing its historical volatility, Galexxy Holdings is 34.98 times less risky than Lobe Sciences. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Lobe Sciences is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Lobe Sciences on August 29, 2024 and sell it today you would earn a total of 0.73 from holding Lobe Sciences or generate 486.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galexxy Holdings vs. Lobe Sciences
Performance |
| Timeline |
| Galexxy Holdings |
| Lobe Sciences |
Galexxy Holdings and Lobe Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Lobe Sciences
The main advantage of trading using opposite Galexxy Holdings and Lobe Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Lobe Sciences 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 Lobe Sciences will offset losses from the drop in Lobe Sciences' long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Lobe Sciences vs. Green Cures Botanical | Lobe Sciences vs. Cann American Corp | Lobe Sciences vs. Rimrock Gold Corp | Lobe Sciences 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |