Correlation Between Galexxy Holdings and MERCK Kommanditgesells
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and MERCK Kommanditgesells 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 MERCK Kommanditgesells into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and MERCK Kommanditgesellschaft auf, you can compare the effects of market volatilities on Galexxy Holdings and MERCK Kommanditgesells 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 MERCK Kommanditgesells. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and MERCK Kommanditgesells.
Diversification Opportunities for Galexxy Holdings and MERCK Kommanditgesells
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galexxy and MERCK is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and MERCK Kommanditgesellschaft au in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MERCK Kommanditgesells 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 MERCK Kommanditgesells. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MERCK Kommanditgesells has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and MERCK Kommanditgesells go up and down completely randomly.
Pair Corralation between Galexxy Holdings and MERCK Kommanditgesells
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 4.31 times more return on investment than MERCK Kommanditgesells. However, Galexxy Holdings is 4.31 times more volatile than MERCK Kommanditgesellschaft auf. It trades about 0.02 of its potential returns per unit of risk. MERCK Kommanditgesellschaft auf is currently generating about 0.0 per unit of risk. If you would invest 9.50 in Galexxy Holdings on August 25, 2024 and sell it today you would lose (7.89) from holding Galexxy Holdings or give up 83.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Galexxy Holdings vs. MERCK Kommanditgesellschaft au
Performance |
| Timeline |
| Galexxy Holdings |
| MERCK Kommanditgesells |
Galexxy Holdings and MERCK Kommanditgesells Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and MERCK Kommanditgesells
The main advantage of trading using opposite Galexxy Holdings and MERCK Kommanditgesells positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, MERCK Kommanditgesells 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 MERCK Kommanditgesells will offset losses from the drop in MERCK Kommanditgesells' long position.| Galexxy Holdings vs. Green Cures Botanical | Galexxy Holdings vs. Indoor Harvest Corp | Galexxy Holdings vs. Speakeasy Cannabis Club | Galexxy Holdings vs. City View Green |
| MERCK Kommanditgesells vs. Green Cures Botanical | MERCK Kommanditgesells vs. Galexxy Holdings | MERCK Kommanditgesells vs. Indoor Harvest Corp | MERCK Kommanditgesells 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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