Correlation Between Galexxy Holdings and CordovaCann Corp
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and CordovaCann Corp 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 CordovaCann Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and CordovaCann Corp, you can compare the effects of market volatilities on Galexxy Holdings and CordovaCann Corp 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 CordovaCann Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and CordovaCann Corp.
Diversification Opportunities for Galexxy Holdings and CordovaCann Corp
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galexxy and CordovaCann is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and CordovaCann Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CordovaCann 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 CordovaCann Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CordovaCann Corp has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and CordovaCann Corp go up and down completely randomly.
Pair Corralation between Galexxy Holdings and CordovaCann Corp
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 2.16 times less return on investment than CordovaCann Corp. But when comparing it to its historical volatility, Galexxy Holdings is 1.25 times less risky than CordovaCann Corp. It trades about 0.02 of its potential returns per unit of risk. CordovaCann Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 23.00 in CordovaCann Corp on August 26, 2024 and sell it today you would lose (19.48) from holding CordovaCann Corp or give up 84.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.59% |
| Values | Daily Returns |
Galexxy Holdings vs. CordovaCann Corp
Performance |
| Timeline |
| Galexxy Holdings |
| CordovaCann Corp |
Galexxy Holdings and CordovaCann Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and CordovaCann Corp
The main advantage of trading using opposite Galexxy Holdings and CordovaCann Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, CordovaCann Corp 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 CordovaCann Corp will offset losses from the drop in CordovaCann Corp's long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| CordovaCann Corp vs. Green Cures Botanical | CordovaCann Corp vs. Galexxy Holdings | CordovaCann Corp vs. Indoor Harvest Corp | CordovaCann Corp vs. Speakeasy Cannabis Club |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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