Correlation Between Halitron and Galaxy Digital

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

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

Diversification Opportunities for Halitron and Galaxy Digital

0.0

Correlation Coefficient

Halitron  Galaxy Digital

Pay attention - limited upside

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

Pair Corralation between Halitron and Galaxy Digital

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

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

Halitron  vs.  Galaxy Digital Holdings

Halitron

Risk-Adjusted Performance

Very Weak

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Halitron is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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 Halitron and Galaxy Digital

The main advantage of trading using opposite Halitron and Galaxy Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halitron 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 Halitron 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..