Correlation Between Galaxy Entertainment and HelloFresh
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and HelloFresh 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 Galaxy Entertainment and HelloFresh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and HelloFresh SE, you can compare the effects of market volatilities on Galaxy Entertainment and HelloFresh 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 Galaxy Entertainment with a short position of HelloFresh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and HelloFresh.
Diversification Opportunities for Galaxy Entertainment and HelloFresh
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galaxy and HelloFresh is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and HelloFresh SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HelloFresh SE and Galaxy Entertainment 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 Galaxy Entertainment Group are associated (or correlated) with HelloFresh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HelloFresh SE has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and HelloFresh go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and HelloFresh
Assuming the 90 days horizon Galaxy Entertainment Group is expected to under-perform the HelloFresh. But the pink sheet apears to be less risky and, when comparing its historical volatility, Galaxy Entertainment Group is 2.12 times less risky than HelloFresh. The pink sheet trades about -0.01 of its potential returns per unit of risk. The HelloFresh SE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 611.00 in HelloFresh SE on September 1, 2024 and sell it today you would earn a total of 589.00 from holding HelloFresh SE or generate 96.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. HelloFresh SE
Performance |
| Timeline |
| Galaxy Entertainment |
| HelloFresh SE |
Galaxy Entertainment and HelloFresh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and HelloFresh
The main advantage of trading using opposite Galaxy Entertainment and HelloFresh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, HelloFresh 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 HelloFresh will offset losses from the drop in HelloFresh's long position.| Galaxy Entertainment vs. Las Vegas Sands | Galaxy Entertainment vs. MGM Resorts International | Galaxy Entertainment vs. Caesars Entertainment | Galaxy Entertainment vs. Wynn Resorts Limited |
| HelloFresh vs. Biglari Holdings | HelloFresh vs. Potbelly Co | HelloFresh vs. Restaurant Brands International | HelloFresh vs. Red Robin Gourmet |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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