Correlation Between Khiron Life and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Galexxy Holdings 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 Khiron Life and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Galexxy Holdings, you can compare the effects of market volatilities on Khiron Life and Galexxy Holdings 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 Khiron Life with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Galexxy Holdings.
Diversification Opportunities for Khiron Life and Galexxy Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Khiron and Galexxy is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Galexxy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galexxy Holdings has no effect on the direction of Khiron Life i.e., Khiron Life and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Khiron Life and Galexxy Holdings
Assuming the 90 days horizon Khiron Life Sciences is expected to generate 6.01 times more return on investment than Galexxy Holdings. However, Khiron Life is 6.01 times more volatile than Galexxy Holdings. It trades about 0.06 of its potential returns per unit of risk. Galexxy Holdings is currently generating about 0.01 per unit of risk. If you would invest 3.60 in Khiron Life Sciences on September 13, 2024 and sell it today you would lose (3.59) from holding Khiron Life Sciences or give up 99.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Khiron Life Sciences vs. Galexxy Holdings
Performance |
| Timeline |
| Khiron Life Sciences |
| Galexxy Holdings |
Khiron Life and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Galexxy Holdings
The main advantage of trading using opposite Khiron Life and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Galexxy Holdings 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 Galexxy Holdings will offset losses from the drop in Galexxy Holdings' long position.| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
| Galexxy Holdings vs. 4Front Ventures Corp | Galexxy Holdings vs. Khiron Life Sciences | Galexxy Holdings vs. BellRock Brands | Galexxy Holdings vs. Elixinol Global |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |