Correlation Between Medical Marijuana and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Medical Marijuana 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 Medical Marijuana and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Marijuana I and Galexxy Holdings, you can compare the effects of market volatilities on Medical Marijuana 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 Medical Marijuana with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Marijuana and Galexxy Holdings.
Diversification Opportunities for Medical Marijuana and Galexxy Holdings
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Medical and Galexxy is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Medical Marijuana I and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Medical Marijuana 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 Medical Marijuana I 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 Medical Marijuana i.e., Medical Marijuana and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Medical Marijuana and Galexxy Holdings
Given the investment horizon of 90 days Medical Marijuana I is expected to under-perform the Galexxy Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Medical Marijuana I is 1.01 times less risky than Galexxy Holdings. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Galexxy Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Medical Marijuana I vs. Galexxy Holdings
Performance |
| Timeline |
| Medical Marijuana |
| Galexxy Holdings |
Medical Marijuana and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Marijuana and Galexxy Holdings
The main advantage of trading using opposite Medical Marijuana and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Marijuana 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.| Medical Marijuana vs. Rezolute | Medical Marijuana vs. Tempest Therapeutics | Medical Marijuana vs. Forte Biosciences | Medical Marijuana vs. Dyadic International |
| Galexxy Holdings vs. Genesis Electronics Group | Galexxy Holdings vs. Nextmart | Galexxy Holdings vs. Emergent Health Corp | Galexxy Holdings vs. Goff Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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