Correlation Between Galexxy Holdings and Mydecine Innovations
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Mydecine Innovations 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 Mydecine Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Mydecine Innovations Group, you can compare the effects of market volatilities on Galexxy Holdings and Mydecine Innovations 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 Mydecine Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Mydecine Innovations.
Diversification Opportunities for Galexxy Holdings and Mydecine Innovations
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galexxy and Mydecine is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Mydecine Innovations Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mydecine Innovations 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 Mydecine Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mydecine Innovations has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Mydecine Innovations go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Mydecine Innovations
Given the investment horizon of 90 days Galexxy Holdings is expected to generate 21.64 times less return on investment than Mydecine Innovations. But when comparing it to its historical volatility, Galexxy Holdings is 4.98 times less risky than Mydecine Innovations. It trades about 0.02 of its potential returns per unit of risk. Mydecine Innovations Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Mydecine Innovations Group on August 29, 2024 and sell it today you would lose (43.64) from holding Mydecine Innovations Group or give up 99.18% 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. Mydecine Innovations Group
Performance |
| Timeline |
| Galexxy Holdings |
| Mydecine Innovations |
Galexxy Holdings and Mydecine Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Mydecine Innovations
The main advantage of trading using opposite Galexxy Holdings and Mydecine Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Mydecine Innovations 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 Mydecine Innovations will offset losses from the drop in Mydecine Innovations' long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Mydecine Innovations vs. Green Cures Botanical | Mydecine Innovations vs. Cann American Corp | Mydecine Innovations vs. Rimrock Gold Corp | Mydecine Innovations 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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