Correlation Between MERCK Kommanditgesells and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both MERCK Kommanditgesells 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 MERCK Kommanditgesells and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MERCK Kommanditgesellschaft auf and Galexxy Holdings, you can compare the effects of market volatilities on MERCK Kommanditgesells 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 MERCK Kommanditgesells with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MERCK Kommanditgesells and Galexxy Holdings.
Diversification Opportunities for MERCK Kommanditgesells and Galexxy Holdings
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between MERCK and Galexxy is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MERCK Kommanditgesellschaft au and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and MERCK Kommanditgesells 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 MERCK Kommanditgesellschaft auf 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 MERCK Kommanditgesells i.e., MERCK Kommanditgesells and Galexxy Holdings go up and down completely randomly.
Pair Corralation between MERCK Kommanditgesells and Galexxy Holdings
Assuming the 90 days horizon MERCK Kommanditgesellschaft auf is expected to under-perform the Galexxy Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, MERCK Kommanditgesellschaft auf is 4.31 times less risky than Galexxy Holdings. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Galexxy Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9.50 in Galexxy Holdings on August 25, 2024 and sell it today you would lose (7.89) from holding Galexxy Holdings or give up 83.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
MERCK Kommanditgesellschaft au vs. Galexxy Holdings
Performance |
| Timeline |
| MERCK Kommanditgesells |
| Galexxy Holdings |
MERCK Kommanditgesells and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MERCK Kommanditgesells and Galexxy Holdings
The main advantage of trading using opposite MERCK Kommanditgesells and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MERCK Kommanditgesells 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.| MERCK Kommanditgesells vs. Green Cures Botanical | MERCK Kommanditgesells vs. Galexxy Holdings | MERCK Kommanditgesells vs. Indoor Harvest Corp | MERCK Kommanditgesells vs. Speakeasy Cannabis Club |
| Galexxy Holdings vs. Green Cures Botanical | Galexxy Holdings vs. Indoor Harvest Corp | Galexxy Holdings vs. Speakeasy Cannabis Club | Galexxy Holdings vs. City View Green |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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