Correlation Between Galaxy Entertainment and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and SHIP HEALTHCARE 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 Entertainment and SHIP HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on Galaxy Entertainment and SHIP HEALTHCARE 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 Entertainment with a short position of SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and SHIP HEALTHCARE.
Diversification Opportunities for Galaxy Entertainment and SHIP HEALTHCARE
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Galaxy and SHIP is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC and Galaxy Entertainment 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 Entertainment Group are associated (or correlated) with SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and SHIP HEALTHCARE
Assuming the 90 days trading horizon Galaxy Entertainment is expected to generate 5.09 times less return on investment than SHIP HEALTHCARE. In addition to that, Galaxy Entertainment is 1.42 times more volatile than SHIP HEALTHCARE HLDGINC. It trades about 0.01 of its total potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about 0.1 per unit of volatility. If you would invest 1,280 in SHIP HEALTHCARE HLDGINC on September 3, 2025 and sell it today you would earn a total of 120.00 from holding SHIP HEALTHCARE HLDGINC or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| Galaxy Entertainment |
| SHIP HEALTHCARE HLDGINC |
Galaxy Entertainment and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and SHIP HEALTHCARE
The main advantage of trading using opposite Galaxy Entertainment and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, SHIP HEALTHCARE 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE's long position.| Galaxy Entertainment vs. CITY OFFICE REIT | Galaxy Entertainment vs. Columbia Sportswear | Galaxy Entertainment vs. Gaztransport Technigaz SA | Galaxy Entertainment vs. JAPAN AIRLINES |
| SHIP HEALTHCARE vs. Materialise NV | SHIP HEALTHCARE vs. MUTUIONLINE | SHIP HEALTHCARE vs. Applied Materials | SHIP HEALTHCARE vs. Lamar Advertising |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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