Correlation Between ATRenew and Galaxy Entertainment
Can any of the company-specific risk be diversified away by investing in both ATRenew and Galaxy Entertainment 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 ATRenew and Galaxy Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRenew Inc DRC and Galaxy Entertainment Group, you can compare the effects of market volatilities on ATRenew and Galaxy Entertainment 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 ATRenew with a short position of Galaxy Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRenew and Galaxy Entertainment.
Diversification Opportunities for ATRenew and Galaxy Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATRenew and Galaxy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATRenew Inc DRC and Galaxy Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Entertainment and ATRenew 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 ATRenew Inc DRC are associated (or correlated) with Galaxy Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Entertainment has no effect on the direction of ATRenew i.e., ATRenew and Galaxy Entertainment go up and down completely randomly.
Pair Corralation between ATRenew and Galaxy Entertainment
If you would invest (100.00) in Galaxy Entertainment Group on October 24, 2024 and sell it today you would earn a total of 100.00 from holding Galaxy Entertainment Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ATRenew Inc DRC vs. Galaxy Entertainment Group
Performance |
| Timeline |
| ATRenew Inc DRC |
| Galaxy Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATRenew and Galaxy Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRenew and Galaxy Entertainment
The main advantage of trading using opposite ATRenew and Galaxy Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRenew position performs unexpectedly, Galaxy Entertainment 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 Galaxy Entertainment will offset losses from the drop in Galaxy Entertainment's long position.The idea behind ATRenew Inc DRC and Galaxy Entertainment Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Galaxy Entertainment vs. Performance Food Group | Galaxy Entertainment vs. Bridgford Foods | Galaxy Entertainment vs. One Group Hospitality | Galaxy Entertainment vs. Shake Shack |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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