Correlation Between GABY and Leafly Holdings

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

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

Diversification Opportunities for GABY and Leafly Holdings

0.0

Correlation Coefficient

GABY  Leafly Holdings

Pay attention - limited upside

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

Pair Corralation between GABY and Leafly Holdings

If you would invest (100.00) in Leafly Holdings on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Leafly Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GABY Inc  vs.  Leafly Holdings

GABY Inc

Risk-Adjusted Performance

Very Weak

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

Leafly Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leafly Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Leafly Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with GABY and Leafly Holdings

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

The idea behind GABY Inc and Leafly 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.