Correlation Between Galaxy Gaming and SAMMON

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

By analyzing existing cross correlation between Galaxy Gaming and SAMMON 475 08 APR 32, you can compare the effects of market volatilities on Galaxy Gaming and SAMMON 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 Galaxy Gaming with a short position of SAMMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Gaming and SAMMON.

Diversification Opportunities for Galaxy Gaming and SAMMON

0.04

Correlation Coefficient

Galaxy Gaming  SAMMON

Significant diversification

The 3 months correlation between Galaxy and SAMMON is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Gaming and SAMMON 475 08 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMMON 475 08 and Galaxy Gaming 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 Galaxy Gaming are associated (or correlated) with SAMMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMMON 475 08 has no effect on the direction of Galaxy Gaming i.e., Galaxy Gaming and SAMMON go up and down completely randomly.

Pair Corralation between Galaxy Gaming and SAMMON

Given the investment horizon of 90 days Galaxy Gaming is expected to generate 2.69 times more return on investment than SAMMON. However, Galaxy Gaming is 2.69 times more volatile than SAMMON 475 08 APR 32. It trades about 0.04 of its potential returns per unit of risk. SAMMON 475 08 APR 32 is currently generating about 0.01 per unit of risk. If you would invest  190.00  in Galaxy Gaming on October 7, 2024 and sell it today you would earn a total of  81.00  from holding Galaxy Gaming or generate 42.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	25.0%
Values	Daily Returns

Galaxy Gaming  vs.  SAMMON 475 08 APR 32

Galaxy Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

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

SAMMON 475 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAMMON 475 08 APR 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for SAMMON 475 08 APR 32 investors.

Pair Trading with Galaxy Gaming and SAMMON

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

The idea behind Galaxy Gaming and SAMMON 475 08 APR 32 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.