Correlation Between Galaxy Entertainment and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on Galaxy Entertainment and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and SYSTEMAIR.
Diversification Opportunities for Galaxy Entertainment and SYSTEMAIR
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galaxy and SYSTEMAIR is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and SYSTEMAIR
Assuming the 90 days trading horizon Galaxy Entertainment is expected to generate 2.75 times less return on investment than SYSTEMAIR. In addition to that, Galaxy Entertainment is 1.09 times more volatile than SYSTEMAIR AB. It trades about 0.12 of its total potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.37 per unit of volatility. If you would invest 688.00 in SYSTEMAIR AB on September 5, 2024 and sell it today you would earn a total of 102.00 from holding SYSTEMAIR AB or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. SYSTEMAIR AB
Performance |
| Timeline |
| Galaxy Entertainment |
| SYSTEMAIR AB |
Galaxy Entertainment and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and SYSTEMAIR
The main advantage of trading using opposite Galaxy Entertainment and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Galaxy Entertainment vs. SYSTEMAIR AB | Galaxy Entertainment vs. Altair Engineering | Galaxy Entertainment vs. Pentair plc | Galaxy Entertainment vs. MYFAIR GOLD P |
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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