Correlation Between CDT Environmental and Galaxy Payroll

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Can any of the company-specific risk be diversified away by investing in both CDT Environmental and Galaxy Payroll 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 CDT Environmental and Galaxy Payroll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDT Environmental Technology and Galaxy Payroll Group, you can compare the effects of market volatilities on CDT Environmental and Galaxy Payroll 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 CDT Environmental with a short position of Galaxy Payroll. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDT Environmental and Galaxy Payroll.

Diversification Opportunities for CDT Environmental and Galaxy Payroll

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between CDT and Galaxy is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CDT Environmental Technology and Galaxy Payroll Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Payroll Group and CDT Environmental 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 CDT Environmental Technology are associated (or correlated) with Galaxy Payroll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Payroll Group has no effect on the direction of CDT Environmental i.e., CDT Environmental and Galaxy Payroll go up and down completely randomly.

Pair Corralation between CDT Environmental and Galaxy Payroll

Given the investment horizon of 90 days CDT Environmental Technology is expected to generate 1.76 times more return on investment than Galaxy Payroll. However, CDT Environmental is 1.76 times more volatile than Galaxy Payroll Group. It trades about 0.02 of its potential returns per unit of risk. Galaxy Payroll Group is currently generating about -0.01 per unit of risk. If you would invest  57.00  in CDT Environmental Technology on August 20, 2025 and sell it today you would lose (15.00) from holding CDT Environmental Technology or give up 26.32% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

CDT Environmental Technology  vs.  Galaxy Payroll Group

 Performance 
       Timeline  
CDT Environmental 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CDT Environmental Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, CDT Environmental reported solid returns over the last few months and may actually be approaching a breakup point.
Galaxy Payroll Group 

Risk-Adjusted Performance

Weakest

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

CDT Environmental and Galaxy Payroll Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CDT Environmental and Galaxy Payroll

The main advantage of trading using opposite CDT Environmental and Galaxy Payroll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDT Environmental position performs unexpectedly, Galaxy Payroll 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 Payroll will offset losses from the drop in Galaxy Payroll's long position.
The idea behind CDT Environmental Technology and Galaxy Payroll Group 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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