Correlation Between Galexxy Holdings and Integrated Cannabis

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

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

Diversification Opportunities for Galexxy Holdings and Integrated Cannabis

0.15

Correlation Coefficient

Galexxy Holdings  Integrated Cannabis

Average diversification

The 3 months correlation between Galexxy and Integrated is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Galexxy Holdings and Integrated Cannabis Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Cannabis 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 Integrated Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Cannabis has no effect on the direction of Galexxy Holdings i.e., Galexxy Holdings and Integrated Cannabis go up and down completely randomly.

Pair Corralation between Galexxy Holdings and Integrated Cannabis

Given the investment horizon of 90 days Galexxy Holdings is expected to generate 4.24 times more return on investment than Integrated Cannabis. However, Galexxy Holdings is 4.24 times more volatile than Integrated Cannabis Solutions. It trades about 0.1 of its potential returns per unit of risk. Integrated Cannabis Solutions is currently generating about 0.14 per unit of risk. If you would invest  0.59  in Galexxy Holdings on December 30, 2024 and sell it today you would earn a total of  0.36  from holding Galexxy Holdings or generate 61.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Galexxy Holdings  vs.  Integrated Cannabis Solutions

Galexxy Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Galexxy Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Galexxy Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Integrated Cannabis

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Cannabis Solutions are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Integrated Cannabis disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galexxy Holdings and Integrated Cannabis

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

The idea behind Galexxy Holdings and Integrated Cannabis Solutions 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.