Correlation Between Nextmart and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Nextmart 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 Nextmart and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextmart and Galexxy Holdings, you can compare the effects of market volatilities on Nextmart 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 Nextmart with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextmart and Galexxy Holdings.
Diversification Opportunities for Nextmart and Galexxy Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nextmart and Galexxy is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nextmart and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Nextmart 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 Nextmart 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 Nextmart i.e., Nextmart and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Nextmart and Galexxy Holdings
Given the investment horizon of 90 days Nextmart is expected to generate 3.13 times more return on investment than Galexxy Holdings. However, Nextmart is 3.13 times more volatile than Galexxy Holdings. It trades about 0.17 of its potential returns per unit of risk. Galexxy Holdings is currently generating about 0.02 per unit of risk. If you would invest 0.02 in Nextmart on October 26, 2024 and sell it today you would earn a total of 0.04 from holding Nextmart or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nextmart vs. Galexxy Holdings
Performance |
| Timeline |
| Nextmart |
| Galexxy Holdings |
Nextmart and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextmart and Galexxy Holdings
The main advantage of trading using opposite Nextmart and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextmart 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.| Nextmart vs. Genesis Electronics Group | Nextmart vs. Industrial Nanotech | Nextmart vs. Intl Star | Nextmart vs. HeadsUp Entertainment 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |