Correlation Between Arcane Crypto and Galaxy Digital

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

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

Diversification Opportunities for Arcane Crypto and Galaxy Digital

0.0

Correlation Coefficient

Arcane Crypto  Galaxy Digital

Pay attention - limited upside

The 3 months correlation between Arcane and Galaxy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arcane Crypto AB 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 Arcane Crypto 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 Arcane Crypto AB 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 Arcane Crypto i.e., Arcane Crypto and Galaxy Digital go up and down completely randomly.

Pair Corralation between Arcane Crypto and Galaxy Digital

If you would invest  0.01  in Arcane Crypto AB on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Arcane Crypto AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Arcane Crypto AB  vs.  Galaxy Digital Holdings

Arcane Crypto AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arcane Crypto AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Arcane Crypto is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Galaxy Digital Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Galaxy Digital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Arcane Crypto and Galaxy Digital

The main advantage of trading using opposite Arcane Crypto and Galaxy Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcane Crypto 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.

The idea behind Arcane Crypto AB and Galaxy Digital Holdings 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.