Correlation Between Canadian Utilities and Galaxy Payroll
Can any of the company-specific risk be diversified away by investing in both Canadian Utilities 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 Canadian Utilities and Galaxy Payroll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Utilities Limited and Galaxy Payroll Group, you can compare the effects of market volatilities on Canadian Utilities 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 Canadian Utilities with a short position of Galaxy Payroll. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and Galaxy Payroll.
Diversification Opportunities for Canadian Utilities and Galaxy Payroll
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canadian and Galaxy is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited 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 Canadian Utilities 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 Canadian Utilities Limited 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 Canadian Utilities i.e., Canadian Utilities and Galaxy Payroll go up and down completely randomly.
Pair Corralation between Canadian Utilities and Galaxy Payroll
Assuming the 90 days horizon Canadian Utilities Limited is expected to generate 0.03 times more return on investment than Galaxy Payroll. However, Canadian Utilities Limited is 37.18 times less risky than Galaxy Payroll. It trades about 0.13 of its potential returns per unit of risk. Galaxy Payroll Group is currently generating about -0.1 per unit of risk. If you would invest 1,597 in Canadian Utilities Limited on September 11, 2025 and sell it today you would earn a total of 24.00 from holding Canadian Utilities Limited or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Utilities Limited vs. Galaxy Payroll Group
Performance |
| Timeline |
| Canadian Utilities |
| Galaxy Payroll Group |
Canadian Utilities and Galaxy Payroll Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and Galaxy Payroll
The main advantage of trading using opposite Canadian Utilities and Galaxy Payroll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities 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.| Canadian Utilities vs. ACEA SpA | Canadian Utilities vs. ATCO | Canadian Utilities vs. Atco | Canadian Utilities vs. China Resources Gas |
| Galaxy Payroll vs. Iveda Solutions | Galaxy Payroll vs. Professional Diversity Network | Galaxy Payroll vs. Antelope Enterprise Holdings | Galaxy Payroll vs. Founder Group Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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