Correlation Between DigiMax Global and Galaxy Digital
Can any of the company-specific risk be diversified away by investing in both DigiMax Global and Galaxy Digital 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 DigiMax Global and Galaxy Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiMax Global and Galaxy Digital Holdings, you can compare the effects of market volatilities on DigiMax Global and Galaxy Digital 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 DigiMax Global with a short position of Galaxy Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiMax Global and Galaxy Digital.
Diversification Opportunities for DigiMax Global and Galaxy Digital
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DigiMax and Galaxy is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and Galaxy Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Digital Holdings and DigiMax Global 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 DigiMax Global are associated (or correlated) with Galaxy Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Digital Holdings has no effect on the direction of DigiMax Global i.e., DigiMax Global and Galaxy Digital go up and down completely randomly.
Pair Corralation between DigiMax Global and Galaxy Digital
Assuming the 90 days horizon DigiMax Global is expected to under-perform the Galaxy Digital. In addition to that, DigiMax Global is 3.26 times more volatile than Galaxy Digital Holdings. It trades about -0.04 of its total potential returns per unit of risk. Galaxy Digital Holdings is currently generating about 0.18 per unit of volatility. If you would invest 1,060 in Galaxy Digital Holdings on September 4, 2024 and sell it today you would earn a total of 751.00 from holding Galaxy Digital Holdings or generate 70.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DigiMax Global vs. Galaxy Digital Holdings
Performance |
Timeline |
DigiMax Global |
Galaxy Digital Holdings |
DigiMax Global and Galaxy Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DigiMax Global and Galaxy Digital
The main advantage of trading using opposite DigiMax Global and Galaxy Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global position performs unexpectedly, Galaxy Digital 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 Digital will offset losses from the drop in Galaxy Digital's long position.DigiMax Global vs. DeFi Technologies | DigiMax Global vs. Argo Blockchain PLC | DigiMax Global vs. Galaxy Digital Holdings | DigiMax Global vs. BIG Blockchain Intelligence |
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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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