Correlation Between Galexxy Holdings and Wildflower Brands
Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and Wildflower Brands 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 Wildflower Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galexxy Holdings and Wildflower Brands, you can compare the effects of market volatilities on Galexxy Holdings and Wildflower Brands 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 Wildflower Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and Wildflower Brands.
Diversification Opportunities for Galexxy Holdings and Wildflower Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galexxy and Wildflower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Wildflower Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wildflower Brands 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 Wildflower Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wildflower Brands has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Wildflower Brands go up and down completely randomly.
Pair Corralation between Galexxy Holdings and Wildflower Brands
If you would invest 6.35 in Galexxy Holdings on August 26, 2024 and sell it today you would lose (4.74) from holding Galexxy Holdings or give up 74.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Galexxy Holdings vs. Wildflower Brands
Performance |
| Timeline |
| Galexxy Holdings |
| Wildflower Brands |
Galexxy Holdings and Wildflower Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galexxy Holdings and Wildflower Brands
The main advantage of trading using opposite Galexxy Holdings and Wildflower Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, Wildflower Brands 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 Wildflower Brands will offset losses from the drop in Wildflower Brands' long position.| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
| Wildflower Brands vs. Green Cures Botanical | Wildflower Brands vs. Galexxy Holdings | Wildflower Brands vs. Indoor Harvest Corp | Wildflower Brands 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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