Correlation Between Galexxy Holdings and HempAmericana

Can any of the company-specific risk be diversified away by investing in both Galexxy Holdings and HempAmericana 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 Galexxy Holdings and HempAmericana into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Galexxy Holdings and HempAmericana, you can compare the effects of market volatilities on Galexxy Holdings and HempAmericana 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 Galexxy Holdings with a short position of HempAmericana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galexxy Holdings and HempAmericana.

Diversification Opportunities for Galexxy Holdings and HempAmericana

0.0

Correlation Coefficient

Galexxy Holdings  HempAmericana

Pay attention - limited upside

The 3 months correlation between Galexxy and HempAmericana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and HempAmericana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HempAmericana and Galexxy 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 Galexxy Holdings are associated (or correlated) with HempAmericana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HempAmericana has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and HempAmericana go up and down completely randomly.

Pair Corralation between Galexxy Holdings and HempAmericana

If you would invest  0.01  in HempAmericana on September 3, 2024 and sell it today you would earn a total of  0.00  from holding HempAmericana or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Galexxy Holdings  vs.  HempAmericana

Galexxy Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Galexxy Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

HempAmericana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HempAmericana has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, HempAmericana is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Galexxy Holdings and HempAmericana

The main advantage of trading using opposite Galexxy Holdings and HempAmericana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galexxy Holdings position performs unexpectedly, HempAmericana 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 HempAmericana will offset losses from the drop in HempAmericana's long position.

The idea behind Galexxy Holdings and HempAmericana 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.