Correlation Between Protext Mobility and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Protext Mobility 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 Protext Mobility and Galexxy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protext Mobility and Galexxy Holdings, you can compare the effects of market volatilities on Protext Mobility 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 Protext Mobility with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protext Mobility and Galexxy Holdings.
Diversification Opportunities for Protext Mobility and Galexxy Holdings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Protext and Galexxy is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Protext Mobility and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings and Protext Mobility 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 Protext Mobility 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 Protext Mobility i.e., Protext Mobility and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Protext Mobility and Galexxy Holdings
Given the investment horizon of 90 days Protext Mobility is expected to generate 1.15 times more return on investment than Galexxy Holdings. However, Protext Mobility is 1.15 times more volatile than Galexxy Holdings. It trades about 0.01 of its potential returns per unit of risk. Galexxy Holdings is currently generating about -0.25 per unit of risk. If you would invest 0.12 in Protext Mobility on October 11, 2024 and sell it today you would lose (0.01) from holding Protext Mobility or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protext Mobility vs. Galexxy Holdings
Performance |
| Timeline |
| Protext Mobility |
| Galexxy Holdings |
Protext Mobility and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protext Mobility and Galexxy Holdings
The main advantage of trading using opposite Protext Mobility and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protext Mobility 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.| Protext Mobility vs. Living Cell Technologies | Protext Mobility vs. Multicell Techs | Protext Mobility vs. Institute of Biomedical | Protext Mobility vs. Health Sciences Gr |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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