Correlation Between Trustcash Holdings and Galectin Therapeutics
Can any of the company-specific risk be diversified away by investing in both Trustcash Holdings and Galectin Therapeutics 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 Trustcash Holdings and Galectin Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trustcash Holdings and Galectin Therapeutics, you can compare the effects of market volatilities on Trustcash Holdings and Galectin Therapeutics 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 Trustcash Holdings with a short position of Galectin Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trustcash Holdings and Galectin Therapeutics.
Diversification Opportunities for Trustcash Holdings and Galectin Therapeutics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trustcash and Galectin is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Trustcash Holdings and Galectin Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galectin Therapeutics and Trustcash Holdings 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 Trustcash Holdings are associated (or correlated) with Galectin Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galectin Therapeutics has no effect on the direction of Trustcash Holdings i.e., Trustcash Holdings and Galectin Therapeutics go up and down completely randomly.
Pair Corralation between Trustcash Holdings and Galectin Therapeutics
Given the investment horizon of 90 days Trustcash Holdings is expected to under-perform the Galectin Therapeutics. In addition to that, Trustcash Holdings is 1.48 times more volatile than Galectin Therapeutics. It trades about -0.06 of its total potential returns per unit of risk. Galectin Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest 195.00 in Galectin Therapeutics on August 26, 2024 and sell it today you would earn a total of 83.00 from holding Galectin Therapeutics or generate 42.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Trustcash Holdings vs. Galectin Therapeutics
Performance |
| Timeline |
| Trustcash Holdings |
| Galectin Therapeutics |
Trustcash Holdings and Galectin Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trustcash Holdings and Galectin Therapeutics
The main advantage of trading using opposite Trustcash Holdings and Galectin Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trustcash Holdings position performs unexpectedly, Galectin Therapeutics 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 Galectin Therapeutics will offset losses from the drop in Galectin Therapeutics' long position.| Trustcash Holdings vs. Park Electrochemical | Trustcash Holdings vs. Innovative Solutions and | Trustcash Holdings vs. Curtiss Wright | Trustcash Holdings vs. National Presto Industries |
| Galectin Therapeutics vs. Eliem Therapeutics | Galectin Therapeutics vs. HCW Biologics | Galectin Therapeutics vs. Scpharmaceuticals | Galectin Therapeutics vs. Milestone Pharmaceuticals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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